Q2’17 EARNINGS DECKAugust 2, 2017

Safe Harbor StatementThis presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, including

statements regarding our financial outlook for the third quarter 2017 and the full year of 2017, the quality of our smartwatch user experience, the timing of the retail availability of

our smartwatch, our performance in the second half of the year, and our long-term market opportunity. These forward-looking statements are only predictions and may differ

materially from actual results due to a variety of factors, including: the effects of the highly competitive market in which we operate, including competition from much larger

technology companies; our ability to anticipate and satisfy consumer preferences in a timely manner; our ability to successfully develop and timely introduce new products and

services or enhance existing products and services; retail and customer acceptance of existing and new products; any inability to accurately forecast consumer demand and

adequately manage our inventory; our ability to ship products on the timelines we anticipate and unexpected delays; our ability to detect, prevent or fix quality issues in our

products or services; uncertain ability to retain employees; our reliance on third-party suppliers, contract manufacturers, and logistics providers, and our limited control over

such parties; delays in procuring components and product from these third parties or their suppliers; the ability of third parties to successfully manufacture and ship in a timely

manner quality products; seasonality; product liability issues, security breaches or other defects, which may adversely affect product performance, our reputation and brand

awareness and overall market acceptance of our products and services; ability to integrate acquired technologies and employees into our operations, particularly in new

geographies; warranty claims; the fact that the market for connected health and fitness devices is relatively new and unproven; the ability of our channel partners to sell our

products; litigation and related costs; privacy; and other general market, political, economic and business conditions.

Additional risks and uncertainties that could affect our financial results are included under the caption “Risk Factors” in our Annual Report on Form 10-K for the full year ended

December 31, 2016, and our most recently filed Quarterly Report on Form 10-Q, which are available on our Investor Relations website at investor.fitbit.com and on the SEC

website at www.sec.gov. All forward-looking statements contained herein are based on information available to us as of the date hereof and we do not assume any obligation to

update these statements as a result of new information or future events. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking

statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future

acquisitions, mergers, dispositions, joint ventures, or investments we may make.

This presentation also includes certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles, or GAAP. These non-GAAP

financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of

limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial

measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for

comparison. We have provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available in the appendix.

Trademarks: Fitbit and the Fitbit logo are trademarks or registered trademarks of Fitbit, Inc. in the United States and other countries. Additional Fitbit trademarks can be found at

www.fitbit.com/legal/trademark-list. Third-party trademarks are the property of their respective owners.

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©2017 Fitbit, Inc. All rights reserved. Proprietary & Confidential.

Fitbit helps people lead

healthier, more active lives by

empowering them with data,

inspiration, and guidance to

reach their goals.

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Q2 2017 Highlights

• 3.4 million devices sold, #1 wearable fitness brand, #1 selling connected health and fitness tracker (Charge 2), #1 enterprise tracker (Blaze).

• Surpassed high end of Q2 guidance, tightened FY’17 estimates, raised mid-point guidance.

• Revenue of $353 million, non–GAAP EPS of ($0.08) per share.

• $676 million in cash, cash equivalents, and marketable securities on the balance sheet as of the quarter end.

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Growing User Community & Brand Relevancy

• Leading global wearable brand with 67 million

devices sold since inception.

• More than 11.2 million Feed users, generating

~648 million views since March 2017 launch and

more than 2.5 million users have joined a Group.

• Supportive environment: 74% of posts receive

positive affirmations.

• Launched targeted medical/health groups

(Diabetes, Heart Health).

60

0

10

20

30

40

50

60

70

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Total Devices Sold

(Units in millions)

67

2014 2015 2016 2017

5

$586.5

$353.3

Q2 2016 Q2 2017

Revenue

- 40%

($ in millions)

• Devices sold declined (40%) y/y, up 14%

sequentially.

- North American end consumer demand, sell-

through, surpassed our sell-in unit shipments.

- Exited quarter with clean inventory channel.

• Average selling price increased both sequentially

and y/y to $100.76.

• Accessory and other sales added an additional

$3.98 in revenue per device.

• New products introduced over the past 12 months

represented 81% of the revenue.

• Repeat consumers represented 38% of activations

in the quarter, with 39% of these repeat purchases

coming from reactivations.

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$20.0

$24.4

$10

$20

$30

Q1 2017 Q2 2017

Americas, excl. USA

Transitioning Business – Sequential Growth Improving

($ in millions) 7

• International revenue grew 9% y/y and 20% q/q to

$154 million, representing 44% of revenue.

- APAC revenue was up 46% y/y, 1% q/q.

- EMEA revenue was up 9% y/y, 24% q/q.

- Americas excluding the U.S., revenue declined

11% y/y, up 22% q/q.

• As we continued to focus on reducing inventory in

the channel, U.S. sales declined 55% to $199

million dollars, up 17% q/q, and represented 56% of

revenue.

• For the second quarter in a row, using North

America as a proxy, end consumer demand, sell-

through, surpassed sell-in unit shipment numbers.

$170.4

$199.2

$50

$100

$150

$200

Q1 2017 Q2 2017

United States

$87.8

$108.6

$50.0

$70.0

$90.0

$110.0

$130.0

$150.0

$170.0

$190.0

Q1 2017 Q2 2017

EMEA

$20.8 $21.1

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

$22.0

$24.0

$26.0

$28.0

$30.0

Q1 2017 Q2 2017

APAC

1%22%

24%17%

Non-GAAP Gross Margin and Operating Expenses

42.0% 43.0%

Q2 2016 Q2 2017

Non-GAAP Gross Margin

• Increased 100 bpts y/y, 300 bpts sequentially; favorably

impacted by mix, higher ASP and lower warranty

expense. Partially offset by price protection on Flex 2

and tooling write-off.

• On-track to achieve targeted 42.5-44% FY gross margin.

$204.4

$190.6

Q2 2016 Q2 2017

Non-GAAP OpEx

-7%

($ in millions)

• Exhibiting expense discipline, on-track to achieve full

year $850m operating expense target.

• Headcount declined 3% sequentially, up 112 adjusted

heads y/y to 1,585.

8

+100 bps

Non-GAAP Operating Expenses Detail

$115.2

$96.7

75

100

125

Q2 2016 Q2 2017

S&M

$68.2 $67.9

$0

$25

$50

$75

$100

$125

Q2 2016 Q2 2017

R&D

$21.0 $25.9

0

25

50

75

100

125

Q2 2016 Q2 2017

G&A

• Continued investment in innovation.

• Increased headcount spending offset by lower spending on consulting / contractor expenses.

0%

• Marketing to support 1 new

product in ‘17 vs. 2 new products

in ’16.

• Shift of some marketing to H2 to

support smartwatch launch.

• Continuing to scale the business

globally.

• Higher legal costs.

($ in millions)

24%-16%

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Balance Sheet & Cash Flow

Inventory $190.6 $215.0 $230.4 $200.3 $141.5

Inventory Turns 6.8 5.2 8.0 3.4 4.8

Accounts Receivables $377.5 $461.4 $477.8 $194.8 $216.3

Days Sales Outstanding 67 86 85 71 74

Accounts Payable $226.4 $253.1 $313.8 $127.5 $84.0

Capital Expenditures $20.1 $30.1 $11.8 $28.2 $11.7

Cap Expenditures as % of

Revenue3.4% 6.0% 2.1% 9.4% 3.3%

Free Cash Flow ($39.1) ($88.8) $61.2 $21.0 ($57.6)

Cash & Marketable Securities $759.7 $672.1 $706.0 $726.1 $675.8

• Capital expenditures down in Q2 driven by the timing of leasehold improvements and no new product introductions.

• A/R down due to decline in unit sales. Inventory down as we focused on reducing channel.

Q2’16 Q3’16 Q4’16 Q1’17

($ in millions) 10

Q2’17

FY ’17 Guidance

($ in millions, except percentages and per share amounts)

FY’17 Guidance

Revenue $1,550 $1,700

y/y decline (29%) (22%)

Non-GAAP gross margin 42.5% 44%

Non-GAAP free cash flow ($80) ($50)

Non-GAAP EPS ($0.40) ($0.22)

Non-GAAP tax rate ~46%

Stock-based compensation $90 $100

Non-GAAP share count ~230

Guidance Context:• Increased low-end of revenue/EPS/FCF to reflect 1st half

outperformance.

• Assumes shipment of smartwatch for holiday. Smartwatch

expected to have lower gross margin than tracker.

• Continued investment in headcount to support growth,

innovation, and diversifying future revenue stream, but down

from prior guidance resulting in $10m lower SBC.

• Tax rate increased to 46% because of geographic mix of income

worldwide.

Low High

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($ in millions, except percentages and per share amounts)

Low High

3Q’17 Guidance

Revenue $380 $400

y/y decline (25%) (21%)

Non-GAAP EPS ($0.05) ($0.02)

Non-GAAP tax rate ~46%

Stock-based compensation $23 $25

Non-GAAP share count ~230

Guidance Context:

• Assumes some new product introduction sales, but vast majority

of revenue driven by legacy products.

• Tax rate increased to 46% because of geographic mix of income

worldwide.

Low High

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP

financial measures in this presentation: non-GAAP gross profit, non-GAAP gross margin; non-GAAP operating expenses, non-GAAP operating income

(loss); non-GAAP net income (loss), non-GAAP diluted net income or loss per share, adjusted EBITDA, revenue on a constant currency basis, and non-

GAAP free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to,

financial information prepared and presented in accordance with GAAP.

We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with

useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain

items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present

similar non-GAAP financial measures.

There are limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP

financial measures reflect the exclusion of items, specifically stock-based compensation expense, amortization of intangible assets, and the related

income tax effects of the aforementioned exclusions, that are recurring and will be reflected in our financial results for the foreseeable future. In addition,

these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. A

reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables

included in this presentation, and investors are encouraged to review the reconciliation.

Guidance for non-GAAP financial measures excludes Jawbone litigation costs, stock-based compensation, amortization of acquired intangible assets, and

tax effects associated with these items. We have not reconciled guidance for non-GAAP financial measures to their most directly comparable GAAP

measures because certain items that impact these measures are uncertain, out of our control and/or cannot be reasonably predicted. Accordingly, a

reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

The following are explanations of the adjustments that are reflected in one or more of our non-GAAP financial measures:

• Stock-based compensation expense relates to equity awards granted primarily to our employees. We exclude stock-based compensation expense

because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational

performance. In particular, companies calculate stock-based compensation expense using a variety of valuation methodologies and subjective

assumptions.

• In January 2017, the Company conducted a reorganization of its business, including a reduction in workforce. The restructuring costs impacted our

results for the first quarter of 2017. Restructuring costs primarily included severance-related costs. We believe that excluding the is expenses

provides great visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may

also facilitate comparison with the results of other companies in our industry.

• Litigation expense relates to legal costs incurred due to litigation with Aliphcom, Inc. d/b/a Jawbone. We exclude these expenses because we do not

believe these expenses have a direct correlation to the operations of our business and because of the singular nature of the claims underlying the

Jawbone litigation matters. We began excluding Jawbone litigation costs in the second quarter of 2016 as these costs significantly in 2016, and may

continue to be material for the remainder of 2017. Although not excluded in reporting for the first quarter of 2016, these litigation expenses were $9.1

million in that quarter.

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

The following are explanations of the adjustments that are reflected in one or more of our non-GAAP financial measures:

• In March 2014, we recalled the Fitbit Force after some of our users experienced allergic reactions to adhesives in the wristband. This recall primarily

impacted our results for the fourth quarter of 2013, the first quarter of 2014 and the fourth quarter of 2015.

• Amortization of intangible assets relates to our acquisitions of FitStar, Pebble and Vector. We exclude these amortization expenses because we do not

believe these expenses have a direct correlation to the operation of our business.

• Income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures such as

stock-based compensation, amortization of intangibles, restructuring and valuation allowance in order to provide a more meaningful measure of non-

GAAP net income (loss).

• Purchase of property and equipment is deducted from net cash provided by (used in) operating activities to arrive at non-GAAP free cash flow, which

reflects the amount of cash generated that is available to be used for investments in the business.

• We translated revenue from non-US dollar based transactions for the three and six months ended July 1, 2017 using the exchange rates that were

effective in the comparable prior year period to calculate revenue to exclude the effect of changes in foreign exchange rates.

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

GAAP gross profit

16

GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

19

GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

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GAAP to Non-GAAP Reconciliation(In thousands, except percentages and per share amounts)

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