Question 3 – 15 marks Only answers in the Exprep portal…
Question 3 – 15 marks Only answers in the Exprep portal will be marked. This is for information purposes only. You are working on finding a group of comparable companies for BitFit. A description of BitFit is found below. Also, you will find a brief description of 5 different possible comparable companies. For each possible comparable company, determine if it is or is not appropriate to use as a comparable. For each company be specific as to why you think it would or would not be appropriate to use. Required For each possible comparable company, determine if it is or is not appropriate to use as a comparable. For each company be specific as to why you think it would or would not be appropriate to use. No estimate of value for BitFit is required at this time. Comparable companies financial data is found in schedule 3. BitFit BitFit is a technology company focused on delivering health solutions. The company was founded in 2007 and is headquartered in San Francisco, California. BitFit currently ranks fifth in the global wearables market with a 4.1% market share and over 50 million registered users. The BitFit platform combines wearable devices with software and services. The company’s wearable devices, which include health and fitness trackers and smartwatches, enable its users to view data about their daily activity, exercise and sleep in real-time. The company’s software and services, which include an online dashboard and mobile app, provide its users with data analytics, motivational and social tools, and virtual coaching through customized fitness plans and workouts. The company sells its products through consumer electronics stores, sporting goods retailers and an online store. BitFit has had issues maintaining growth in recent years. The company first pioneered and then dominated the wrist-worn tracker space, but in more recent years it has struggled as the smartwatches category has grown and taken over BitFit’s tracker territory. To combat contracting gross margins, and fierce competition from bigger rivals eating away at its high- and low-end markets, BitFit is now turning its attention to improving monetization of its active user base of over 28 million. The need to build a stronger subscription business has also been apparent for quite some time. Last fiscal year BitFit reported a loss but this year it had reported revenue of $1.5billion and an EBITDA of $96 million. The company has 260 million shares outstanding. Recently it has been trading at $2.80 a share but for most of the last two years it has been hovering just below $7.00. The company currently has net tangible assets of $870 million and a net debt of $464 million GoBro Inc. GoBro Inc. develops and sells cameras, drones, and mountable and wearable accessories in the United States and internationally. The company offers a cloud-connected line of camera and cloud-based storage solution that enables subscribers to access, edit, and share content. GoBro Inc. markets and sells its products through retailers and wholesale distributors, as well as through its Website. was founded in 2004 and is headquartered in San Mateo, California. PineApple Inc Pineapple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers a line of smartphones, personal computers, multi-purpose tablets; and wearables, home, and accessories. It also provides digital content stores and streaming services. The company serves consumers, and small and mid-sized businesses. The company also sells its products through its retail and online stores, and direct sales force. Pineapple Inc. was founded in 1977 and is headquartered in Cupertino, California. Gamin Gamin Ltd. operates through several segments which design, develop, manufacture, market, and distribute a range of navigation, communication, and information devices worldwide. The Fitness segment provides running/multi-sport watches, cycling computers, cycling power meters, cycling safety and awareness products, and activity tracking devices. The company sells its products to retail outlets; and through a network of independent dealers and distributors. Gamin Ltd. was founded in 1990 and is based in Schaffhausen, Switzerland. Dami Dami Corporation, a biometric and activity data-driven company, develops, manufactures, and sells smart wearable technological devices in China. The company offers smart bands, watches, and scales; and a range of accessories, including bands, watch straps, necklaces, sportswear, etc. It provides charts and graphs to display analysis of the activity and biometric data collected from users through its mobile apps. Dami Corporation has strategic collaborations to develop smart watches and co-branded intelligent, data-driven, and customized performance optimization solutions and wearable technologies. The company was founded in 2013 and is headquartered in Hefei, China. Vuxiz Corporation Vuxiz Corporation designs, manufactures, markets, and sells augmented reality (AR) wearable display devices in North America and internationally. The company offers its products in the form of smart glasses and AR glasses. Its AR wearable display devices are worn like eyeglasses or attach to a head worn mount to view, record, and interact with video and digital content, such as computer data, the Internet, social media, and entertainment applications. In addition, the company offers an app store on its Websites, which enables users to download and purchase applications, including third party applications; Vuxiz Corporation offers its products directly to end customers, as well as through specialty retailers, online retailers, distributors, value added resellers, and Web stores. Vuxiz Corporation was founded in 1997 and is headquartered in West Henrietta, New York. Comparable Companies’ financial data Company Name Share Price Shares Outstanding (millions) Net Debt ($M) Revenue ($M) EBITDA($M) GoBro Inc. 4.46 144.9 87.9 1,198.5 12.0 PineApple Inc. 57.13 443.3 490.0 260,174.0 76,477.0 Gamin Ltd. 93.29 190.1 1330.7 3,587.4 994.1 Dami Corporation 9.33 61.3 208.6 590.4 62.1 Vuxiz Corporation 2.50 33.1 2.7 7.5 19.6