Wednesday, February 4th, 2015
Under Armour Posts 31% Revenue Growth, Buys MyFitnessPal For $475 Million
Under Armour reported Wednesday afternoon that it recorded $895 million in fourth quarter revenue, a figure that grew 31% compared to the prior–year period and easily beat the $848 million Wall Street consensus. Net income for the quarter grew 37% to $88 million and resulted in earnings per share of 40 cents, a figure that came in a penny above the analyst estimate.
Under Armour also announced that it will acquire MyFitnessPal, the maker of a popular calorie–counting and fitness–tracking app and, popular social fitness app, Endomondo.
“We are incredibly proud of recording our 19th consecutive quarter of over 20% net revenue growth, including achieving over 30% growth in each quarter of 2014, demonstrating the unending opportunity we see across our five key growth drivers”
– Kevin Plank, Under Armour Chairman and CEO
Under Armour was founded in 1996 by Kevin Plank, a then 23–year old former special teams captain of the University of Maryland football team. Plank initially began the business from his grandmother's basement in Washington, D.C. He spent his time traveling up and down the East Coast with nothing but apparel in the trunk of his car. His first team sale came at the end of 1996 with a $17,000 sale.
People began to take notice of the brand when a front page photo of USA Today featured Oakland Raiders quarterback Jeff George wearing an Under Armour mock turtleneck. Following that front page, Under Armour's first major sale came when an equipment manager from Georgia Tech asked Plank for 10 shirts. This deal opened the door to a contract with Arizona State University, North Carolina State and other Division I football teams. With positive reviews from players, word began to spread and orders began to increase. That same year, Under Armour launched with several new apparel lines including ColdGear, TurfGear, AllseasonGear, and StreetGear. By the end of 1996, Under Armour had sold 500 Under Armour HeatGear shirts, generating $17,000. In 1997, Plank had $100,000 in orders to fill and found a factory in Ohio to make the shirts.
Under Armour Acquires MapMyFitness
#8 - MapMyRun
As a product of the Under Armour Connected Fitness Business Unit, the MapMyFitness suite of mobile apps and websites continues to build the world's largest digital fitness community by providing interactive tools to make fitness social, simple and rewarding. The flagship consumer brands – MapMyRun, MapMyRide, and MapMyWalk – are among the most popular apps on iOS and Android and the cloud–based platform has been supporting millions of users since it launched in 2007. MapMyFitness is an open platform, seamlessly integrating with more than 400 fitness tracking devices, sensors and wearables. Headquartered in Austin, Texas, MapMyFitness has over 100 employees and offers integrated marketing and advertising solutions, premium consumer subscription products, and a SaaS platform that helps partners of any size tap into advanced fitness tracking technology, workout database, nutritional data, calorie calculators, and 160+ million of the best running, cycling and walking routes around the world.
Under Armour Launches UA Record
Welcome to UA Record
The definitive health and fitness network dedicated to helping you lead a healthier life. Track, analyze, and share your fitness activity with the world's first social network for athletes and fitness enthusiasts.
Sports clothing and accessory manufacturer Under Armour on January 6th, 2015 launched its own health and fitness network, which the company says is aimed at getting you – and your friends – fitter.
Company CEO Kevin Plank said Under Armour Record (UA Record) is suitable for people of different fitness levels and creates a visual dashboard of all your activity data in one place, thereby making it easier to keep track of your personal fitness goals.
Like other competing platforms, UA Record will keep track of your steps, sleep, calories burned, heart rate, weight and more. It'll also play nicely with "thousands of fitness tracking devices and apps," so you can integrate your motion and GPS data without hassle.
The company said that since its December 2013 acquisition of MapMyFitness it has been looking for ways to make its digital platform even larger; with Endomondo and MyFitnessPal, that goal is achieved.
Under Armour will pay $85 million for Endomondo, a fitness tracking platform that lets users map, record and share workouts through social networks. It has 20 million registered users who live primarily in Europe, and due to its international presence, Under Armour plans to use Endomondo to "scale" and grow its Under Armour Connected Fitness community.
#106 - Endomondo
Our mission is to motivate people to get and stay active. We do this by making it more engaging, more social and more fun to exercise.
Endomondo is designed to track your workouts, provide audio feedback along the way and offer guidance on how to reach your goal. It's a free personal trainer in your pocket which syncs with Endomondo.com, where you can access a full training log and analyze your fitness activity.
We believe fitness should be fun, and social interaction is key to achieving this. Whether it is a real–time pep talk from your significant other, an inspiring comment from your best friend or colleague, or likes from other friends in your social circle, the positive reinforcement will help you go the extra mile. That's why the app is designed to make it easy for you to connect with your friends, and we strongly recommend you to invite a least a couple of close ones to try it out.
“Similar to MapMyFitness, Endomondo and MyFitnessPal have established track records of unmatched equity, expertise and passion in the fitness and nutrition space, and they are ideal partners to enable Under Armour to provide data–driven, proactive solutions to help athletes of all levels lead healthier and more active lifestyles.”
- Under Armour CEO Plank
#2 - MyFitnessPal
MyFitnessPal is a free smartphone app and website that tracks diet and exercise to determine optimal nutrients and caloric intake for the users' goals.
In a Consumer Reports diet rating, MyFitnessPal was rated the best free program (with 83 points) in overall satisfaction, "maintenance, calorie awareness, and food variety".
Under Armour has scored points with Fitness Insider as the MVP for 2014 and has well–positioned itself to be a leading FitTech company.
Does Under Armour have what it takes to become FitnessInsider's FitTech of the Year in 2015?
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