Advanced Television

Fubo Q3 revenue up 43%

November 3, 2023

FuboTV, the sports-first live TV streaming platform, has announced its Q3 financial results to September 30th 2023. The company also raised its previously stated full year 2023 guidance for North America.

Fubo achieved double digit growth versus the prior year in North America, delivering $313 million total revenue (up 43 per cent year-over-year) and a record 1.477 million paid subscribers (up 20 per cent year-over-year), meaningfully exceeding third quarter 2023 guidance. The company delivered $30.3 million in North America ad revenue during the quarter, an increase of 34 per cent year-over-year.

Notably, Fubo expanded average revenue per user (ARPU) in North America by 17 per cent year-over-year to a record $83.51 during the quarter.

In the Rest of World (ROW), Fubo delivered $8.4 million total revenue (up 45 per cent year-over-year) and 411,000 paid subscribers (up 15 per cent year-over-year). ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.

Fubo continued to steadily progress over the quarter toward its 2025 positive cash flow goal. The company achieved year-over-year improvement in net loss of $21 million and a $43 million improvement in net cash used in operating activities. Also during the quarter, Fubo achieved a $40 million improvement in Free Cash Flow and a $21 million improvement in Adjusted EBITDA (AEBITDA). These improvements were a result of ongoing efforts to drive operating leverage across the business, and represent the third consecutive quarter of year-over-year improvements in these metrics. Additionally, Fubo reached 6 per cent gross margin, a 884 bps year-over-year improvement year-over-year, as well as a 619 bps reduction in subscriber-related expenses (SRE) as a percentage of revenue to 89 per cent, reflecting continued progress in optimising content costs.

The company said it maintained a strong balance sheet and healthy liquidity position, ending the quarter with $266 million in cash, cash equivalents and restricted cash. Fubo added it has sufficient liquidity to fund its current operating plan and the momentum necessary to reach its 2025 positive cash flow goal.

Looking to full year 2023, Fubo is raising revenue and paid subscriber guidance in North America. The Company now expects to close the year with $1.319 billion – $1.324 billion in total revenue, representing 34 per cent year-over-year growth at the midpoint (from previously stated guidance of $1.260 billion – $1.280 billion), and 1.584 million – 1.599 million paid subscribers, representing 10 per cent year-over-year growth at the midpoint (from prior guidance of 1.565 million – 1.585 million).

“Fubo’s strong third quarter exceeded guidance in North America, highlighted by an all-time high in paid subscribers as well as double digit year-over-year revenue growth,” said David Gandler, co-founder and CEO, Fubo. “As we progress toward our 2025 positive cash flow goal, we are confident that a return to content aggregation and bundling – which we long predicted – is now a reality. Fubo’s aim is to be a super aggregator, offering consumers premium content delivered through an intuitive and personalised streaming experience, at multiple price points, all in a single app.”

“Fubo’s third quarter marked continued improvements across our key performance metrics, including subscriber growth, gross margin, ARPU expansion and advertising revenue growth,” added Edgar Bronfman Jr, executive chairman, Fubo. “Looking ahead, as we raise full year 2023 guidance, we remain confident in the value proposition of our business model and believe we are well positioned to further benefit from industry trends, including the growing number of consumers subscribing to vMVPD services and the significant increase in CTV advertising.”

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