Fitbit is a leading manufacturer of fitness and health tracking gadgets. The company has recently filed for an initial public offering (IPO) with the Securities and Exchange Commission to raise $100 million through stocks. The lead underwriters for the IPO are Deutsche Bank, Morgan Stanley and Bank of America Merill Lynch.
The fitness tracker wearables market is on the rise thanks to the growing number of fitness enthusiasts across the world. Even big companies are now plunging into this field and introducing new wearables and smartwatches. Latest among them is the Apple Watch.
Fitbit was founded in the year 2007 by James Park and Eric Friedman and specializes in making tracking devices to monitor health and fitness. The devices are colorful and can be clipped or strapped on to the body and can measure steps taken, distance, calories burnt, heart rate, activity levels, sleep etc. The company also provides companion software which is accessible on more than 120 Android, iOS and Windows smartphones. There is also an all-in-one app that shows you the stats , analyses them and gives you tips. Users can enter what they have eaten during the whole day and track their calorie intake and other health parameters.
Fitbit devices include Surge super watch, Charge and Charge HR wrist bands and other smaller devices as well as the Aria weighing scale and apparel. The company has sold 10.9 million devices in 2014 registering a rise of 142% over 2013. Most of the sales were through retail channels in the US. This year, Fitbit’s sales were 3.90 million in the first quarter itself.
The company faces huge competition from Apple Watch which offers a whole range of health and fitness services apart from a variety of features like phone calls, text messages, music, photos and GPS.
Fitbit wrote in its filing against the label ‘risk factors’:
“We expect competition in our market to intensify in the future as new and existing competitors introduce new or enhanced products and services that are potentially more competitive than our products and services.”