Fitbit performed better than expected in the first quarter ended March 31 with sales rising by 50 percent to $336.7 million, boosted by the new Alta and Blaze models. Sales rose by 33 percent in the U.S., by 113 percent in Europe, the Middle East and Africa, and by 142 percent in Asia-Pacific. However, the gross margin contracted by four percentage points to 46.3 percent, due in part to new product launches. Operating expenses surged by 171 percent to $215 million because of increased R&D and marketing investments. The net result was a profit of $11.0 million, down by 77 percent from the year-ago period.

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