Fitbit's (FIT) Q3 'Beat and Raise' Offset by Stock Lock-up Release, Secondary Offering

Fitbit, Inc. (NYSE: FIT) shares are lower late Monday following the company's Q3 report as the company also plans a secondary offering. The stock is down over 8 percent late.

After markets closed, Fitbit reported Q3 adjusted EPS of $0.24 with revenue of $409.3 million, versus consensus expectations calling for EPS of $0.10 and revenue of $351 million.

Co-founder and CEO James Park noted, Revenue of $409 million increased 168 percent year-over-year, exceeding the high end of our guidance, and adjusted EBITDA nearly doubled.

• OpEx comprised 28.6 percent of revenue in Q315, compared to 26.9 percent in Q215 and 25.0 percent in Q314.
• U.S. comprised 66 percent of Q3 revenue; APAC 16 percent, EMEA 12 percent, and Other Americas 6 percent
• U.S. revenue grew 130 percent year-over-year; APAC 314 percent, EMEA 282 percent, and Other Americas 286 percent

Looking ahead, Fitbit lifted its FY15 EPS outlook to a range of $0.90 to $0.92, from a prior outlook of $0.69 to $0.77 and the consensus of $0.77. Fitbit also sees FY15 revenue of $1.77 to $1.80 billion, versus the consensus of $1.69 billion.

The company also sees Q4 EPS of $0.20 to $0.25 versus the consensus of $0.20. Fitbit sees fourth quarter revenue of $620-$650 million, versus the consensus of $580.72 million.

Fitbit also announced that it intends to file a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) on November 2, 2015 relating to a proposed underwritten follow-on public offering of its Class A common stock. Fitbit is proposing to sell 7,000,000 shares and certain selling stockholders are proposing to sell 14,000,000 shares..

The company also announced today that Morgan Stanley & Co. LLC, on behalf of the underwriters of Fitbit’s initial public offering in June 2015, at the request of Fitbit, has agreed to release the lock-up restrictions for Fitbit’s employees and consultants as of October 31, 2015 with respect to approximately 2.3 million shares, which represents up to 10% of the shares of Fitbit common stock, options, and restricted stock units held by such employees and consultants.

You May Also Be Interested In

• Ambiq launches public offering of 1.8 million shares
• TPG names Axel André as CFO, effective July 2026
• Vivos Therapeutics extends Streeterville debt conversion deal to August