FuboTV releases results for quarter ended March 31, 2024

Fubo Exceeded Q1 2024 Guidance in North America, Delivering 1.511M Paid Subscribers, $394M Total Revenue

NEW YORK — FuboTV Inc. (d/b/a/ Fubo) (NYSE: FUBO), the leading sports-first live TV streaming platform, today announced its financial results for the first quarter ended March 31, 2024.

Fubo again exceeded expectations in North America, closing the first quarter with double digit year-over-year (YoY) growth, delivering 1.511 million paid subscribers, up 18% YoY, and $394 million in total revenue, up 24% YoY. The Company continued to accelerate YoY ad revenue growth, increasing 21% in the first quarter compared to prior year. Additionally, Fubo delivered $84.54 average revenue per user (ARPU), up 10% YoY.

In the Rest of World (ROW), the Company delivered 397,000 paid subscribers, up 5% YoY, and $8.4 million total revenue, up 7% YoY, during the quarter. ARPU reached $7, up 7% YoY. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.

Fubo achieved 7% gross margin (globally), representing a 588 (bps) YoY improvement.

Net Loss from continuing operations in the first quarter was $56.3 million, leading to an earnings per share (EPS) loss of $0.19. This compares favorably to a Net Loss from continuing operations of $83.4 million, or an EPS loss of $0.37 in the first quarter of 2023. Adjusted EPS in the first quarter improved to a loss of $0.11, compared to an adjusted EPS loss of $0.27 in the first quarter of 2023. Adjusted EPS excludes the impact of stock-based compensation, amortization of intangibles and amortization of debt premium (discount), net.

The Company achieved $10 million improvement in net cash used in operating activities YoY. Additionally, Fubo achieved a $10 million improvement in Free Cash Flow and a $18 million improvement in AEBITDA during the first quarter compared to the same period in 2023. These improvements represent the 5th consecutive quarter of YoY improvements in these metrics.

Fubo continued to maintain a strong balance sheet and healthy liquidity position, ending the quarter with $175 million in cash, cash equivalents and restricted cash. Fubo believes it has sufficient liquidity to fund its current operating plan as it progresses towards its 2025 profitability goal, setting aside any potential impact of the JV discussed below.

The Company continues to believe in the merits of its antitrust lawsuit filed against The Walt Disney Company, FOX Corp. and Warner Bros. Discovery regarding the planned launch of a sports streaming joint venture (JV). Fubo is encouraged by the public support of companies such as DIRECTV and Dish, as well as the Court’s recent decision to set a hearing date for its preliminary injunction motion. Reports of the Department of Justice’s ongoing investigation and congressional inquiries are also encouraging. Fubo believes customers deserve choice, fair pricing and innovative products, and this is only possible in a competitive streaming marketplace.

Guidance

Given the many unknowns related to the potential launch of the JV, including the outcome of the antitrust lawsuit and reported Department of Justice investigation, the Company’s guidance and planned path to profitability do not reflect any potential impact of the JV launch to its business.

North America

Second Quarter 2024: Fubo is projecting 1,275,000 to 1,295,000 subscribers, representing 10% YoY growth at the midpoint, and $357.5 to $367.5 million total revenue, representing 19% YoY growth at the midpoint.

Full Year 2024: Fubo is projecting 1,675,000 to 1,695,000 subscribers, representing 4% YoY growth at the midpoint, and $1.525 to $1.545 billion total revenue, representing 15% YoY growth at the midpoint.

Fubo’s projection of revenue growth outpacing subscriber growth reflects the Company’s expectation of continued ARPU expansion and improved unit economics. Subscriber growth reflects conservatism in the Company’s outlook and, in particular, exposure to potential industry volatility, as well as Fubo’s intention to maintain discipline in subscriber acquisition costs relative to monetization, but does not reflect any potential impact of the JV launch.

ROW

Second Quarter 2024: Fubo is projecting 395,000 to 400,000 subscribers, representing 1% YoY at the midpoint, and $8 to $9 million total revenue, representing 4% YoY growth at the midpoint.

Full Year 2024: Fubo is projecting 395,000 to 405,000 subscribers, representing a -2% YoY decline at the midpoint, and $33 to $35 million total revenue, representing 4% YoY growth at the midpoint.

Complete first quarter 2024 results are detailed in Fubo’s shareholder letter available on the company’s IR site.

“Fubo’s first quarter 2024 performance builds upon the strong momentum achieved in the prior year, with double digit paid subscribers, total revenue and ad revenue growth in North America,” said David Gandler, co-founder and CEO, Fubo. “Our results further underscore continued solid execution on our long-term strategy. We continue to operate efficiently and effectively as we execute on our mission to delight consumers with an aggregated sports entertainment offering delivered through a personalized and intuitive streaming experience.”

Gandler continued: “We continue to believe in the merits of our antitrust lawsuit against the sports streaming JV partners and thank those who have publicly supported us. We are encouraged by reports of the Department of Justice’s investigation and look forward to our preliminary injunction hearing in August. Fubo believes if all distributors were offered fair terms, the consumer could have multiple and robust sports streaming options to choose from, access to just the channels they want, and at a price that’s right for them.”

“As we look ahead, the Fubo team remains focused on the core business as well as making progress against our strategic priorities,” said Edgar Bronfman Jr., executive chairman, Fubo. “We are balancing our profitability targets and growth while advancing in our technology capabilities, features and content. Over the past seven quarters, Fubo has consistently met or exceeded guidance and expanded ARPU in a challenging macro environment, all the while delivering a world-class viewing experience for consumers. We remain confident in our ability to build on this success while aggressively working to establish a more fair and equitable playing field for Fubo, other media industry participants and above all, consumers.”