The move is expected to save the company $4 million during the first quarter, Fitbit said. Additionally, the companys co-founders, CEO James Park and Chief Technology Officer Eric Friedman , intend to reduce their 2017 salaries to $1. The reductions were announced amid disappointing quarterly and annual revenue results, as well as lower-than-expected revenue forecasts for 2017. Theres a concern theyre reaching market saturation in the U.S., said Nick McKay , an analyst at Wedbush . There is also the perception that technological innovation within their devices, the pace of that innovation, is slowing. Photo: CHARLIE MAHONEY, NYT Better Buy: Fitbit Inc. vs. Apple More concerning, McKay said, is that Fitbits 2017 revenue forecast is well below what analysts expected. The company announced 2017 revenue guidance of $1.5 billion to $1.7 billion less than the $2.4 billion analysts projected. If you have a business going from roughly $2.2 billion in revenue in 2016, going all the way down to $1.5 to 1.7 billion on the back of demand weakness at the end of the fourth quarter of 2016, theyre in pretty tricky spot right now, McKay said. Park attributed the lower-than-expected financial results to less demand for Fitbit products during the holidays. While we have experienced softer-than-expected holiday demand for trackers in our most mature markets, especially during Black Friday, we have continued to grow rapidly in select markets, Park said.
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