While Jawbone is still struggling to raise money for its IPO and Nike has called it quits, Fitbit has filed to go public and plans to appear under ticker, FIT on New York Stock Exchange.
With this move, the fitness tracker company expects to raise at least $100 million and move on to further figures as they gauge the response. According to the documents filed by the company, the first quarter has resulted in the earning of $336 million whereas $48 million is showed as net income. If these figures are any indication, Fitbit can double the sales and profit in this year.
Fit IPO Dream of Fitbit:
In the last two years, Fitbit anyways has expanded its reach 10 times. And in fact according to Dan Diamond at Forbes, it is the stickiest wearable.
Besides profits, the fitness tracker company has also provided details of units sold. In 2012, the company has sold 1.3 million whereas in 2013 this number skyrocketed to 10.4 million devices.
However, the pace of sales isn’t a problem, maintaining the numbers are, especially when Apple Watch has potentially grabbed most of the attention as well as limelight that even most of smartwatches and fitness trackers couldn’t until now.
Not to mention the budget offerings of Xiaomi Mi Band and ASUS ZenWatch. The applicability, as Forbes points out is also a matter of concern for not just Fitbit but every wearable maker because after six months, in fact much before, people get too bored to wear a fitness bandand toss it in some corner never to see it again.
Despite such obvious concerns, IDC data comes as a silver lining. It shows that by the year 2018, the wearable market is expected to cross $33.7 billion worldwide revenue stream with 114.0 million units shipped.
Coming back to Fitbit growth story, the files that went public also report the spike in the section of paid active users that grew from 600,000 in 2012 to 9.5 million in the first quarter of year 2015.
Users can avail paid services of Fitbit at $49.99 per year that includes services of a digital trainer, some benefits and benchmark analytics. It is to be noted that Fitbit currently enjoys 74% share of the wearable segment compared to 62% of last year.
With this paid services portfolio, Fitbit is hoping to tap on the full-fledged health and fitness section, which is crucial as it means access to over $200 billion in revenues from the customers who take health and fitness quite seriously and invest in commercial weight management services, health club membership, and dietary products.
The IPO dream of Fitbit will be powered by Bank of America Corp., Morgan Stanley, and Deutsche Bank AG. Currently, True Ventures owns 22.4%, SoftBank 5.6%, and Foundry Group owns 28.9% of Fitbit’s shares.