The San Francisco-based company just announced its plan to have their initial public offering (IPO) in hopes of raising $100 million. Fitbit plans to trade its stock in the New York Stock Exchange (NYSE) under the ticker symbol FIT. Morgan Stanley, Deutsche Bank and Merrill Lynch are the leading banks behind this transaction.
With today’s filing, Fitbit defines its mission as “help(ing) people lead healthier, more active lives by empowering them with data, inspiration, and guidance to reach their goals.
According to the NPD Group, which Fitbit references in their filing, the company holds 68% of the U.S. fitness activity tracker market, in dollars, as of 2014. The number went up from 58%, in 2013.
In contrast, the Nike FuelBand, which was discontinued last year, had only 10% of the market, extremely distant from Fitbit’s leadership. Their second closest competitor is Jawbone’s UP, with a still distant 19% of the market.
This space is becoming very relevant. NPD reports that 25% of U.S. consumers have used a fitness app on their smartphone. You might recall Under Armour’s acquisition of Endomondo and MyFitnessPal some months ago, which costed the sports apparel company more than half a billion dollars.
Apple is now also a player in this segment, with their Apple Watch now on (limited) availability. However, the heart rate sensor, one of the most attractive features of the device, is not accessible to third party developers, for the moment.
With Millennials leading this tracking-craze revolution, only time will tell what new apps and devices come out to enable us to get insights about our everyday life. Some say babies are next. And there’s a start-up already working on that.
Blog post by Francisco Xavier González Alvarez, MEM Student:
Post originally appeared on the author’s Medium blog.