Fitbit Premium Software Service Product Roadmap
- 1. FitBit Premium – Increasing Subscription Revenue
- 2. 2013 Activity Food Weight Sleep 2012 2012 ARIA Zip ONE FLEX FORCEARIA Zip ONE FLEX
- 3. Take Pic Automated Calorie & Nutrition Calculation Imagine … Actionable & Insights Driven Fitness Coaching Helps Achieve Goals Faster & With Confidence
- 4. Premium Subscriptions Drive Differentiation Lacking Comprehensive Solutions Confusing and Intimidating Choices 10+ Market Players – Niche Markets Lacking Comprehensive Solutions
- 5. Problem Statement • I’m a person with Internet access and disposable income for gadgets Target • I’m interest in achieving or maintaining a healthy weight but • current solutions require too much work (manual calculations) and • I lose motivation easily Problem • With a comprehensive solution that automatically tracks both my activities and food intake to help me make better choices, • I would be more motivated to stay on track and achieve my health goals. • I would feel better about myself, be more confident and be more successful in my personal and professional life. Benefits OMG!HELP
- 6. Target Customer Segment • Men and women between 25 and 45 • At least some college education • At least $75,000 household income
- 7. • About 60% of American adults own smartphones Target Customer Segment • Seeks healthier lifestyle • Men and women between 25 and 45 • At least some college education • At least $75,000 household income
- 8. Target Customer Segment Comfortable using technology Shop at grocery stores which sell healthy food Eat healthy food at healthier restaurants
- 9. The Competition Jawbone UP • Edgy, fashion-forward design • Rudimentary food tracking Nike+ • For “Serious” athletes • Third-party food tracking only
- 10. Our Hardware Reflects Our Brand Values
- 11. Value Proposition • If you’re a busy person trying to stay healthy, Fitbit Premium offers automatic calorie tracking and provides coaching based on comprehensive monitoring of your health. Feature • You save time, make better choices and remain motivated. Benefit
- 12. Release Themes Release 1.0 Comprehensive Diet Solution • Expanded Food and Restaurant Databases • UPC Scanning for off-the shelf items • Advanced coaching based on activity, intake, progress Release 2.0 Automatic Food Tracking • Image recognition for food
- 13. Revenue Model – Top-Down Analysis Highlights 2014 2015 2016 General Population Total United States Population (assuming 1% growth every year) 314,000,000 317,140,000 320,311,400 % of U.S. population 18-65 76% 77% 78% Number of 18-65year olds in U.S. 238,640,000 243,436,664 248,329,741 % of overweight U.S. individuals 60% 61% 61% Total of overweight U.S. Individuals 143,184,000 147,522,618 151,992,701 Fitbit Segement data % of health gadget users and smartphone users in the U.S 14% 14% 14% Total of overweight, smart phone, and health gadget users 20,045,760 20,653,167 21,278,978 % of activity tracker users in the U.S. 30% 30% 30% Market #for overweight, smartphone, and activity tracker users in U.S 6,013,728 6,195,950 6,383,693 TotalFitbit Market share capture (assuming 25% of market) 1,503,432 1,548,987 1,595,923 FITBITGeneral Top-Down Market Segment Analysis
- 14. Revenue Model – Channel & Pricing Highlights Channel & Pricing Assumptions 2014 2015 2016 Distributor Assumptions Distributor % 70% 60% 50% Direct % 30% 40% 50% Average Suggested Retail Price Assumptions Distributor SRP $98 $99 $100 Direct SRP $98 $99 $100 Premium Subscription Fixed price per year per customer $50 $51 $51 % of Premium Subscription Customers as part of Current 20% 30% 50% # of Premium Subscription Customers as part of Current Fitbit 300,686 464,696 797,962 Unit Totals Active Install Base (Equals Fitbit's % of total Market # for overweight, smartphone, and activity tracker users in U.S) 1,503,432 1,548,987 1,595,923 Distributor 1,052,402 929,392 797,962 Direct 451,030 619,595 797,962 Discount Assumptions Distributor 50% 50% 50% Direct (Not applicable) 0% 0% 0% Average Revenue Price /Unit Distributor $49.00 $49.50 $50.00 Direct $98.00 $99.00 $100.00
- 15. Revenue Model – Forecast Highlights Fitbit Gross Revenue Forecast 2014 2015 2016 Revenue from Hardware(Activity Trackers) Distributor $51,567,717.60 $46,004,928.54 $39,898,084.08 Direct $44,200,900.80 $61,339,904.72 $79,796,168.15 Total Revenue $95,768,618.40 $107,344,833.27 $119,694,252.23 Approximate Revenue Forecast from Premium Subscriptions Total Revenue from Existing Premium Subscription Customers $15,034,320.00 $23,467,160.52 $40,700,035.57 TOTAL REVENUE (Activity Trackers and Premium Subscriptions) $110,802,938.40 $130,811,993.79 $160,394,287.80 3Things To Point out 1) Premium subscriptions drive activity tracker sales 2) Risks 3) Expenses
- 16. In Closing … FitBit’s new premium subscription services will engage existing customers and attract new ones while establishing us in the diet market, differentiate us from our competitors and continue to grow revenue Makes premium subscription compelling to existing and new customers No other competitor provide comprehensive dieting solution Removes the tedium of journaling and keeps them motivated Builds on our dominance in the fitness market and extends our reach to the target rich diet market Grows subscription revenues by 271% from $15M in 2014 to $40.7M in 2016 Almost doubles subscription % of revenues from 13.5% 2014 to 25.4% in 2016 Still aligns with our FitBit brand values “Fitbit is dedicated to helping people lead healthier, more active lives”