Photo courtesy of Fitbit.

Fitbit Inc FIT released its third-quarter earnings report after Wednesday's close.

Adjusted earnings came in at a loss of 10 cents per share, falling in line with consensus estimates. Sales came in at $347.2 million, beating estimates by $1.94 million.

"In Q3 we continued to make good progress shifting our business towards the faster-growing smartwatch category with the introduction of Versa 2, expanding Fitbit Health Solutions, and deepening our relationship with consumers with the launch of Premium," said James Park, co-founder and CEO.

"The continued success of the Fitbit brand is built on the trust of our users, and our commitment to strong user privacy and security will not change. I'm excited about the combination of Fitbit and Google and look forward to closing the transaction and further advancing our vision and mission, accelerating innovation in the category and ultimately helping more people around the world get healthier."

Highlights

• 3.5 million devices sold
• Active users grew 9% year-over-year
• Smartwatch revenue represented 58% of revenue
• Fitbit Health Solutions grew 10% in the quarter
• Consumer direct business grew 23%

Fitbit's stock closed at $703 per share.