Fitbit, the company behind fitness-tracking wristbands such as the Fitbit Surge and Fitbit Charge, today filed for an IPO (initial public offering). By going public, the company is looking to raise at least US$100 million and possibly more depending on investor interest.
The IPO filing has revealed some new information about the company. In 2012 it sold 1.3 million devices after modest sales of 200,000 units in 2011. Sales jumped to 4.5 million units in 2013 and more than doubled last year to 10.9 million units. Revenues have climbed just as quickly from US$76.4 million in 2012 to US$745.4 million last year. It has already earned US$336 million in the first quarter of 2015 and has strung together a number of profitable quarters.
Fitbit Premium, a paid service offered alongside Fitbit’s devices, offers additional features such as more detailed reports, a personal digital trainer and more for US$49.99. It now has 6.7 million subscribers (up from 600,000 in 2012). Its recent US$40 milllion acquisition of FitStar will allow it to further enhance its services.
The road to the Fitbit IPO has not always been easy. The company was forced to recall its Force bracelet last year after some users reported skin irritation, rashes, and blistering. Similar reports resurfaced this year with the Fitbit Surge. The first in particular “disrupted our business operations, and adversely affected our financial condition, operating results, and our brand.”
Assuming that Fitbit can complete its IPO later this year, the company will trade on the New York Stock Exchange under the symbol FIT.
Sources : Bloomberg // U.S. Securities and Exchange Commission