Fitbit Premium Software Service Product Roadmap

FitBit Premium – Increasing Subscription Revenue

2013

Activity Food Weight Sleep

2012 2012

ARIA Zip ONE FLEX FORCEARIA Zip ONE FLEX

Take Pic Automated Calorie & Nutrition Calculation

Imagine …

Actionable & Insights Driven Fitness Coaching Helps Achieve Goals Faster & With Confidence

Premium Subscriptions Drive Differentiation

Lacking Comprehensive Solutions Confusing and Intimidating Choices

10+ Market Players – Niche Markets Lacking Comprehensive Solutions

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

Target Customer Segment

• Men and women between 25 and 45

• At least some college education• At least $75,000 household

income

• 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

Target Customer Segment

Comfortable using technology

Shop at grocery stores which sell healthy food

Eat healthy food at healthier restaurants

The Competition

Jawbone UP• Edgy, fashion-forward

design

• Rudimentary food tracking

Nike+• For “Serious” athletes

• Third-party food tracking only

Our Hardware Reflects Our Brand Values

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

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

Revenue Model – Top-Down Analysis Highlights

2014 2015 2016General PopulationTotal 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 18-65 year 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 6,383,693Total Fitbit Market share capture (assuming 25% of market) 1,503,432 1,548,987 1,595,923

FITBIT General Top-Down Market Segment Analysis

Revenue Model – Channel & Pricing HighlightsChannel & Pricing Assumptions 2014 2015 2016

Distributor AssumptionsDistributor % 70% 60% 50%Direct % 30% 40% 50%

Average Suggested Retail Price AssumptionsDistributor SRP $98 $99 $100Direct SRP $98 $99 $100

Premium SubscriptionFixed 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 TotalsActive Install Base (Equals Fitbit's % of total Market # for overweight, smartphone, and activity tracker users in U.S) 1,503,432 1,548,987 1,595,923Distributor 1,052,402 929,392 797,962Direct 451,030 619,595 797,962

Discount AssumptionsDistributor 50% 50% 50%Direct (Not applicable) 0% 0% 0%

Average Revenue Price /UnitDistributor $49.00 $49.50 $50.00Direct $98.00 $99.00 $100.00

Revenue Model – Forecast HighlightsFitbit Gross Revenue Forecast 2014 2015 2016

Revenue from Hardware(Activity Trackers)Distributor $51,567,717.60 $46,004,928.54 $39,898,084.08Direct $44,200,900.80 $61,339,904.72 $79,796,168.15Total Revenue $95,768,618.40 $107,344,833.27 $119,694,252.23

Approximate Revenue Forecast from Premium SubscriptionsTotal 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

3 Things To Point out1) Premium subscriptions drive activity tracker sales2) Risks3) Expenses

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”

Thank you

Questions?