FITBIT INC

CIK:0001447599|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2020	Sep. 28, 2019	Oct. 03, 2020	Sep. 28, 2019
Income Statement [Abstract]
Revenue	$ 363,932	$ 347,200	$ 813,362	$ 932,646
Cost of revenue	228,120	239,248	529,586	627,027
Gross profit	135,812	107,952	283,776	305,619
Operating expenses:
Research and development	90,771	65,693	256,093	213,651
Sales and marketing	60,726	71,296	183,157	222,972
General and administrative	35,493	23,083	112,583	74,640
Total operating expenses	186,990	160,072	551,833	511,263
Operating loss	(51,178)	(52,120)	(268,057)	(205,644)
Interest income (expense), net	(268)	2,388	1,038	8,476
Other income (expense), net	965	(492)	3,198	1,242
Loss before income taxes	(50,481)	(50,224)	(263,821)	(195,926)
Income tax expense (benefit)	3,971	1,669	(125,566)	3,950
Net loss	$ (54,452)	$ (51,893)	$ (138,255)	$ (199,876)
Net loss per share:
Basic (in dollars per share)	$ (0.20)	$ (0.20)	$ (0.52)	$ (0.78)
Diluted (in dollars per share)	$ (0.20)	$ (0.20)	$ (0.52)	$ (0.78)
Shares used to compute net loss per share:
Basic (in shares)	270,443	258,753	267,958	256,046
Diluted (in shares)	270,443	258,753	267,958	256,046

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2020	Sep. 28, 2019
Cash Flows from Operating Activities
Net loss	$ (138,255)	$ (199,876)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for doubtful accounts	461	29
Provision for excess and obsolete inventory	14,189	5,163
Depreciation	33,332	43,215
Non-cash lease expense	11,082	17,961
Accelerated depreciation of property and equipment	726	169
Amortization of intangible assets	8,351	6,100
Stock-based compensation	57,877	59,175
Deferred income taxes	(11,289)	618
Other	585	(50)
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable	76,356	68,617
Inventories	21,410	(125,500)
Prepaid expenses and other assets	(9,136)	5,880
Income taxes receivable	(39,679)	5,992
Accounts payable	(23,028)	11,826
Accrued liabilities and other liabilities	(66,763)	(60,763)
Lease liabilities	(14,432)	(20,975)
Deferred revenue	13,802	(2,586)
Income taxes payable	1,803	(107)
Net cash used in operating activities	(62,608)	(185,112)
Cash Flows from Investing Activities
Purchase of property and equipment	(22,419)	(26,277)
Purchases of marketable securities	(59,735)	(287,969)
Sales of marketable securities	0	2,016
Maturities of marketable securities	200,877	322,132
Acquisition, net of cash acquired	0	(2,625)
Net cash provided by investing activities	118,723	7,277
Cash Flows from Financing Activities
Payment of financing lease liability	(1,384)	(2,239)
Proceeds from issuance of common stock	2,990	7,044
Taxes paid related to net share settlement of restricted stock units	(18,816)	(13,495)
Net cash used in financing activities	(17,210)	(8,690)
Net increase (decrease) in cash and cash equivalents	38,905	(186,525)
Cash and cash equivalents at beginning of period	334,479	473,956
Cash and cash equivalents at end of period	$ 373,384	$ 287,431

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 03, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 373,384	$ 334,479
Marketable securities	43,051	184,023
Accounts receivable, net	358,451	435,269
Inventories	98,996	136,752
Income tax receivable	40,252	573
Prepaid expenses and other current assets	35,013	28,656
Total current assets	949,147	1,119,752
Property and equipment, net	74,684	82,756
Operating lease right-of-use assets	62,144	70,225
Goodwill	64,812	64,812
Intangible assets, net	8,395	16,746
Deferred tax assets	15,330	4,111
Other assets	12,334	9,684
Total assets	1,186,846	1,368,086
Current liabilities:
Accounts payable	174,603	194,626
Accrued liabilities	431,215	513,530
Operating lease liabilities	22,390	23,511
Deferred revenue	49,317	32,307
Income taxes payable	2,439	636
Total current liabilities	679,964	764,610
Long-term deferred revenue	5,327	8,535
Long-term operating lease liabilities	56,703	67,902
Other liabilities	55,960	39,776
Total liabilities	797,954	880,823
Commitments and contingencies (Note 6)
Stockholders’ equity:
Class A and Class B common stock	27	26
Additional paid-in capital	1,166,720	1,126,827
Accumulated other comprehensive income	178	188
Accumulated deficit	(778,033)	(639,778)
Total stockholders’ equity	388,892	487,263
Total liabilities and stockholders’ equity	$ 1,186,846	$ 1,368,086