A conference call for Fitbit‘s first-quarter earnings report began a little differently than previous calls. CEO James Park offered highlights of how its activity tracking devices have been relevant in healthcare situations, including a medical emergency. Park also used the call to reveal data it had never assessed before: product upgrades and trackers reactivated after owners let them sit dormant for 90 days or more.
Park called attention to a Fast Company magazine article on how a participant in an employer wellness program used one of its activity trackers to lose 30 pounds and lower his cholesterol. In another case, Park cited an article from the Annals of Emergency Medicine about how a patient with a history of seizures came to an emergency room after a seizure and doctors detected an irregular heart rate. Doctors received his permission to access his Fitbit data to trace when his heart arrhythmia started.
“While I would like to emphasize that Fitbit’s current products are not medical devices and do not diagnose medical conditions… they point the way to the future,” Park said on the call.
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In its report, the wearables company said 40 percent of Fitbit Blaze and Alta user activations were from users who had prior Fitbit devices. About 20 percent of those were buyers who were coming back to the Fitbit community after they had been inactive for 90 days or more. The report also noted that the “vast majority” of Fitbit Blaze and Alta buyers had upgraded from cheaper Fitbit devices. Less than 10 percent bought down.
Asked what people tend to misunderstand about its product strategy, Park said, “We have a broad line of products where each device addresses a specific need, whether it is consumer need, price point, form factor, battery life, accessories, etc,” he said. “[Fitbit] Blaze succeeded because it was targeted at the high-end active user base. It has five days of battery life at a $199 price point.”
Asked about its recent deal with Alibaba to grow Fitbit’s presence in China, Fitbit CFO Bill Zerella said it was being “pretty conservative” with modeling until it sees how the deal with Alibaba plays out.