he market for trackers remains in its infancy
Fitbit generated $1.9 billion worth of revenue in 2015 -- a more than 100% increase from 2014, when it brought in $745 million. The maker of wearable fitness trackers is on pace to bring in between $2.5 billion and $2.6 billion this year, which would represent annual revenue growth of around 35%. Still, Fitbit's best days may lie ahead of it, and its revenue growth could outperform expectations and accelerate in the quarters ahead.
Fitbit's market is not even remotely saturated. To date, the company has sold fewer than 50 million devices, and many of those (almost 2 million just last quarter) have gone to existing Fitbit owners upgrading to newer products. In a broad sense, virtually every adult on the planet is a potential Fitbit customer, but more realistically, the company could capture a sizable share of the world's smartphone users. 72% of American adults -- about 173 million people -- own smartphones. The vast majority of them do not currently own Fitbits.
On a geographic basis, the overwhelming majority (about 80% last quarter) of the company's revenue comes from North America, leaving ample opportunity for international expansion. Last quarter, the company officially launched in Korea, Japan, and China for the first time.
It's entirely possible that Fitbit's products could be marginalized by intense competition, ever-more powerful smartwatches, or disinterest. But if Fitbit's products remain in demand, the company could generate significant growth in 2017 and beyond.
Demand for Box's service remains strong
Cloud storage provider Box enjoyed annual revenue growth of 74% in its 2015 fiscal year, and 40% in fiscal year 2016. If its most recent guidance proves accurate, it will enjoy sales growth of around 30% in its 2017 fiscal year, although Box has a history of outperforming its guidance.
Box has enjoyed strong momentum in recent months. Last quarter, it added 5,000 new customers, an all-time high for the company. The company brought on a Chief Marketing Officer, Carrie Palin, in July, and increased its targets for hiring sales representatives for the year.
Box continues to launch new products. Recent introductions include Box for Government and Box Zones. Both help to grow Box's total addressable market, creating new potential for the company among government institutions and companies with geographic restrictions.
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