Fitbit, a fitness gadget maker, is the first wearable company that has gone to Wall Street in an effort to raise sales. The company, in a May filing with Securities and Exchange Commission, said that the gross profit was $357.7 million on sales of $745.4 million for 2014.
The company was valued more than $6 billion as it starts its journey as a listed company. The firm used to make wristbands, which tracks a user's daily steps and calories burned, gained around $732 million, giving the company an initial value of $4 billon.
In 2015, an estimated sum of 72.1 million wearable devices, such as smartwatches, fitness bands, and smart eyewear will be on sale. This number will be a 173% increase from the 26.4 million wearables shipped last year.
Last year, 10.9 million devices were sold, which in effect almost tripled their revenue to $745 million, which had a profit of $38.5 million. According to Market research company CCS, 24 million fitness trackers will be sold in the US alone this year, which will double in 2018.
The company was founded in October 2007 by James Park and Eric Friedman. Fitbit, which was based in San Francisco, makes a range of simple, colorful devices that are strapped to the body for counting steps, measuring sleep activity, and monitoring workouts.
Fitbit also made a software for smartphones and a Web application that offers insights and training tips and let the users know the calorie intake and other health metrics they had for the day.
Other companies inclined with activity trackers are Jawbone, Nike, Xaomi, Garmin, and Apple. Jawbone has been picking a fight with its rival, issuing two lawsuits against Fitbit. They alleged that Fitbit and former employees of Jawbone stole trade secrets, business plans, market research, and other information.
Jawbone also claimed that the Fitbit's products overstep patents belonging to the company and asked the court to cease the production and selling of those products.
