Fitbit S-1 Analysis (NYSE: FIT)

Exchange: NYSE

Proposed Symbol: FIT

Employees: 579

CEO: James Park

Offer Amount: $100 mm

No. of Shares to be sold in IPO: 34.5

Price Range: $17 – $19 (upwardly revised from previous $14 – $16 range)

Mkt Cap at Midpoint of Proposed range: $3.6882 billion

Expected IPO Date: 06/18/15

Description from S-1: “Fitbit helps people lead healthier, more active lives by empowering them with data, inspiration, and guidance to reach their goals. Fitbit is transforming the way millions of people around the world achieve their health and fitness goals. The Fitbit platform combines connected health and fitness devices with software and services, including an online dashboard and mobile apps, data analytics, motivational and social tools, personalized insights, and virtual coaching through customized fitness plans and interactive workouts. Our platform helps people become more active, exercise more, sleep better, eat smarter, and manage their weight. Fitbit appeals to a large, mainstream health and fitness market by addressing these key needs with advanced technology embedded in simple-to-use products and services. We pioneered the connected health and fitness market starting in 2007, and since then, we have grown into a leading global health and fitness brand. As of March 31, 2015, we have sold over 20.8 million devices since inception. According to The NPD Group, we held the leading position in the U.S. fitness activity tracker market, with a 68% share, by dollars, in 2014. ”

From the S-1

Underwriters:

  • Lead Underwriter: Morgan Stanley, Deutsche Bank Securities, BofAMerrill Lynch
  • Co Managers: Barclays, SunTrust Robinson Humphrey, Piper Jaffray, Raymond James, Stifel, William Blair

Competitors: Jawbone, Apple, Stayhealthy, Switch2health

Revenue:

  • 2011 = $14.5 mm
  • 2012 = $76.4
  • 2013 = $271.1 mm
  • 2014 = $745.4 mm
  • 3 months ended 03/31/15 = $336.8 mm
    • 3 months ended 03/31/14 = $108.8 mm, representing a 211% YoY increase

Devices Sold:

  • 2011 = 200k
  • 2012 = 1.3 mm
  • 2013 = 4.5 mm
  • 2014= 10.9 mm
  • 3 months ended 03/31/15 = 3.87 mm
    • 3 months ended 03/31/14 = 1.58 mm, representing a 144% YoY increase

Paid Active Users (as of 12/31)

  • 2012 = 600k
  • 2013 = 2.6 mm
  • 2014 = 6.7 mm
  • 3 months ended 03/31/15 = 9.5 mm
    • 3 months ended 03/31/14 = 3.87 mm, representing a 146% YoY increase

Gross Profit:

  • 2012 = $26.64 mm
  • 2013 = $60.25 mm
  • 2014 = $357.66 mm
  • 3 months ended 03/31/15 = $169.2 mm
    • 3 months ended 03/31/14 = $44.77 mm, representing a 278% YoY increase

Cash: $237.85 mm

Total Assets: $669.349 mm

Other Notes

  • Based in San Francisco, CA in 2007
  • Fitbit designs products and experiences that track everyday health and fitness
  • Fitbit’s line of products includes the Fitbit Flexwristband, Fitbit One and Fitbit Zip activity trackers, as well as the Fitbit Aria Wi-Fi Smart Scale
  • Gartner estimates that the worldwide revenue from wearable electronic devices, apps and services for fitness and personal health will grow from $1.6 billion in 2013 to $5 billion by 2016.
    • Wearables support the “quantified self” trend of people tracking their vital signs, activities, and capturing images of what they experience during the day.
  • Fitbit products are carried in more than 20,000 North American retail stores, 30,000 stores around the globe, and sold internationally in 28 countries across Asia and Europe.
  • Fitbit was named a 2014 AlwaysOn Global 250 Top Private Companies winner.
  • Investors:
    • Qualcomm Ventures
    • SAP Ventures
    • SoftBank Capital
    • Foundry Group
    • True Ventures
    • SoftTech VC
  • Funding Rounds:
    • Series A — $2 mm
      • Oct 10, 2008
      • Investors: True Ventures, SoftTech VC
    • Series B — $9 mm
      • Sept 10, 2010
    • Series C — $12 mm
      • Jan 24, 2012
      • Investors: Felicis Ventures, SoftTech VC, True Ventures, Foundry Group
    • Series D — $43 mm
      • Aug 13, 2013
      • Investors: True Ventures, Foundry Group, SoftBank Capital, Sapphire Ventures, Qualcomm Ventures
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