Fitbit is looking to expand its product offerings and geographic scope this year after boosting profits in 2015 and selling 21.4 million devices.
The fitness tracking leader reported that fourth-quarter net income to common stockholders rose to $64.2 million, or 26 cents a diluted share, from $11.9 million, or 19 cents, a year earlier. Revenues for the three months ended Dec. 31 shot up 92 percent to $711.6 million.
For the full year, the company’s net profits to common shareholders rose to $122.8 million, or 75 cents a diluted share, from $38.5 million, or 63 cents, a year earlier. Revenues gained 149 percent to $1.86 billion.
In 2016, Fitbit expects revenue to be as much as $2.5 billion and earnings per share expected to range from $1.08 to $1.20.
But in the first quarter of 2016, the company plans for expenses to cover the global launch of the Fitbit Blaze and Alta. That means higher manufacturing costs that will impact gross margins, and investment in media campaigns and marketing expenses. In response, the company’s shares fell about 15 percent to $14.02 in after-hours trading.
Chief executive officer and cofounder James Park said the company ended the year with 16.9 million users, dramatic growth from 6.7 million at the end of 2014.
“We are beginning 2016 with strong customer engagement and retention, an accelerating pace of innovation and competitive differentiation, and a foundation of significant revenue growth and profitability in 2015,” Park said. He also noted that he was optimistic about the company’s long-term vision as a “broader digital health company” with more powerful sensors, data sets in the cloud, guidance and coaching and preventative care.
Earlier this month, Fitbit introduced a slimmer and sleeker model, the Fitbit Alta. At $129.95, it reflects a higher average selling price for the company.
Although Fitbit is a clear leader in the fitness tracking offerings, it is facing increased competition in the way of smartwatches, smart jewelry and other connected devices that perform a range of functions.