Fubo Q1 exceeds guidance
May 3, 2024
FuboTV, the sports-first live TV streaming platform, has reported its financial results for the first quarter. Fubo says it exceeded expectations in North America, closing Q1 with double digit year-over-year (YoY) growth, delivering 1.511 million paid subscribers, up 18 per cent YoY, and $394 million (€366.6m) in total revenue, up 24 per cent YoY. The company continued to accelerate YoY ad revenue growth, increasing 21 per cent in the first quarter compared to prior year. Additionally, Fubo delivered $84.54 average revenue per user (ARPU), up 10 per cent YoY.
In the Rest of World (ROW), the company delivered 397,000 paid subscribers, up 5 per cent YoY, and $8.4 million total revenue, up 7 per cent YoY, during the quarter. ARPU reached $7, up 7 per cent YoY. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
Fubo achieved 7 per cent gross margin (globally), representing a 588 (bps) YoY improvement.
The company added that it continues to believe in the merits of its antitrust lawsuit filed against The Walt Disney Company, Fox and Warner Bros Discovery regarding the planned launch of a sports streaming joint venture, which can be read about here.
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 notes its 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 per cent YoY growth at the midpoint, and $357.5 to $367.5 million total revenue, representing 19 per cen YoY growth at the midpoint.
Full Year 2024: Fubo is projecting 1,675,000 to 1,695,000 subscribers, representing 4 per cen YoY growth at the midpoint, and $1.525 to $1.545 billion total revenue, representing 15 per cen 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 monetisation, 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 per cen YoY at the midpoint, and $8 to $9 million total revenue, representing 4 per cen YoY growth at the midpoint.
Full Year 2024: Fubo is projecting 395,000 to 405,000 subscribers, representing a -2 per cen YoY decline at the midpoint, and $33 to $35 million total revenue, representing 4 per cen YoY growth at the midpoint.
“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 personalised and intuitive streaming experience.”
“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,” concluded Gandler.
“As we look ahead, the Fubo team remains focused on the core business as well as making progress against our strategic priorities,” added 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.”