Para a malta das IPOS
By
CAITLIN
HUSTON
REPORTER
Fitbit Inc., the maker of wearable fitness trackers, has filed to raise up to $358 million in its initial public offering. The company is planning to sell 22.4 million shares at $14 to $16 a share.
Founded in 2007, Fitbit has six trackers—either worn on the wrist or clipped on—that keep track of activities such as steps taken, calories burned and length of time spent sleeping.
In its filing with the Securities and Exchange Commission, Fitbit said it is seeking to list on the New York Stock Exchange under the symbol “FIT”.
Here are five things to know about the company:
Business is booming
Fitbit has enjoyed growth in sales and even made a profit in 2014, according to its prospectus. Sales rose to $745.2 million in 2014 from $14.5 million in 2011. At the same time, it swung to a profit of $131.8 million from a loss of $4.3 million in 2011.
The company is attracting more and more users, and had sold 20.8 million devices as of March 31, making it the leader in the U.S. fitness activity tracker market, according to market research company The NPD Group.
Still, this continued success depends on beating out rivals who may have “more competitive advantages,” like Apple AAPL, -0.48% which has just launched its own fitness tracking wearable in the form of the Apple Watch.
Its products can irritate
Fitbit’s products have been irritating customers, quite literally. Users have reported skin irritation and even sued because of rashes. The company did an involuntary recall of the Fitbit Force in 2014, and told the Consumer Product Safety Commission it had heard of 9,900 cases of irritation caused by “allergic contact dermatitis.”
Fitbit acknowledges that users have reported skin irritation “not uncommon with jewelry or other wearable products” from its Fitbit Charge, Fitbit Charge HR and Fitbit Surge devices. It cautions that those rashes could lead to problems with retailers or further recalls.
It depends on its MVPs
Fitbit is “highly dependent on the contributions of our co-founders, James Park and Eric N. Friedman”, as well as other management team members. The company has employment offer letters with its main personnel, but they are not contractually locked in, and can opt to leave at will.
Beyond that, it is located in San Francisco where the competition to find skilled workers is tough, posing a risk to its business. In fact, FitBit admits it has had trouble “attracting and retaining” these highly skilled workers in the past.
The devices have a celebrity following
Speaking of MVPs, Fitbit has been praised and modeled by celebrities. Recently, President Barack Obama was photographed wearing a Fitbit Surge, while Shaquille O’Neil and Kelly Ripa have also sported the trackers.
Author David Sedaris was so enamored with his Fitbit that he devoted an entire article in the New Yorker to it.
It’s more than a wearable device
Fitbit launched a “smart” scale in 2012 which is connected to Wi-Fi and keeps track of weight, body fat and body-mass index. The scale can keep track of that data for up to eight users, or as Fitbit markets it “you can invite the whole family”.
As a regulated medical device, Fitbit has to be cleared and approved by the U.S. Food and Drug Administration, and has to continue to meet standards to keep its products in the market.
