fuboTV raises Q3 subs guidance
September 16, 2020
FuboTV, the US streaming service with a focus on sports, has raised its subscriber guidance for Q3 2020 as a result of the start of NFL and the autumn sports seasons. The company also issued 2020 and 2021 revenue and subscriber guidance in a letter to its shareholders.
Additionally, fuboTV’s common stock has been approved to list on the New York Stock Exchange, conditional upon successful pricing of this offering, under the ticker symbol ‘FUBO’.
Highlights of the shareholder letter include:
Updated Q3 2020 Guidance
- Revenues for the third quarter 2020 are expected to be $50-$54 million, a 27 per cent to 38 per cent increase year-over-year. This growth will be driven by continued subscriber growth, an increase in subscription Average Revenue Per User (ARPU) and growth of advertising sales.
○ Ad sales: the third quarter is expected to be fuboTV’s highest revenue quarter of 2020, with a 100 per cent year-over-year increase. Advertising ARPU is expected to be $6-$7.
- The company is raising third quarter subscriber guidance to 370,000-380,000, an increase of over 28 per cent year-over-year and up from 20 per cent growth previously forecast. This is as a result of the start of the NFL and the fall sports seasons.
Issues Q4 2020 Guidance
- Revenues for the fourth quarter are expected to be $68-$75 million, a 53 per cent to 68 per cent increase year-over-year.
- The company expects to end the fourth quarter with 410,000-420,000 paid subscribers, an increase of 30 per cent to 33 per cent year-over-year.
Issues Full Year 2020 and Full Year 2021 Revenue Guidance
- 2020 revenue guidance: $220-231 million, an increase of over 50 per cent year-over-year.
- 2021 revenue guidance: $400-420 million, an increase of over 82 per cent year-over-year.
“The current quarter has been very strong for fuboTV with double digit revenue and subscription growth year-over-year as well as improvement in retention – all achieved during the ongoing pandemic,” said David Gandler, co-founder and CEO. “With the leading live sports package in the market, we are encouraged that the major sports leagues have found ways to navigate the pandemic. The NFL has a great example with Major League Baseball on how to handle Covid-19, and we’re excited for the season. The start of the NFL season and the expectation of a heavy fall sports calendar is driving engagement, ad revenue and higher CPMs, giving us additional confidence to forecast a strong third quarter for fuboTV. Looking ahead, we are focused on driving revenue growth by increasing subscription and ad sales and improving engagement.”