FuboTV exceeds guidance
March 1, 2024
FuboTV, the sports-first live TV streaming platform, has reported its financial results for Q4 and full year ended December 31st 2023.
The Company exceeded guidance across key financial and operating metrics in North America, posting double digit YoY revenue and subscriber growth during Q4. Fubo ended the quarter with 1.62 million paid subscribers, up 12 per cent YoY, and $402 million (€371.5m) in total revenue, up 29 per cent YoY. Ad revenue in the quarter also increased double digits, closing at $38.6 million, up 15 per cent YoY. Furthermore, ad revenue grew 14 per cent for the full year 2023, totaling $114 million. Additionally, Fubo achieved an all-time high $86.65 average revenue per user (ARPU), up 15 per cent YoY.
In the Rest of World (ROW), Fubo delivered $8.4 million total revenue, up 18 per cent YoY and 406,000 paid subscribers, down 3 per cent, during the quarter. ARPU was $6.81, up 12 per cent YoY. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
Guidance
North America
For Q1 2024, Fubo is forecasting 1.41 million-1.43 million paid subscribers, representing 11 per cent YoY growth at the midpoint, and $365 million-$375 million total revenue, representing 17 per cent YoY growth at the midpoint.
For the full year 2024, Fubo is guiding to 1.66 million-1.68 million paid subscribers, representing 4 per cent YoY growth at the midpoint, and $1.5 billion-$1.52 billion total revenue, representing 13 per cent YoY growth at the midpoint. Fubo’s projection of revenue growth outpacing subscriber growth reflects the Company’s continued expectation of ARPU expansion as the result of improved unit economics and margin gains.
ROW
For Q1 2024, the Company is forecasting 380,000-385,000 paid subscribers, representing 1 per cent YoY growth at the midpoint, and $6.6 million-$8.6 million total revenue, representing a -2 per cent YoY decline at the midpoint.
For the full year 2024, Fubo is guiding to 390,000-410,000 paid subscribers, representing a -2 per cent YoY decline at the midpoint, and $31 million-$35 million total revenue, representing 2 per cent YoY growth at the midpoint.
“The fourth quarter capped a great year for Fubo, as we again exceeded guidance across key financial and operational metrics,” said David Gandler, co-founder and CEO at Fubo. “Our strong results in North America included 12 per cent year-over-year growth in subscribers, 29 per cent year-over-year revenue growth and a record $86.65 ARPU. The quarter also marked a healthy year-over-year improvement in profitability and cash usage, reflecting the success of our continuing initiatives focused on adding efficiency across our operations. We remain confident in achieving our 2025 positive cash flow goal.”
Gandler continued: “The results for the fourth quarter and full year 2023 demonstrate that Fubo continues to execute on our long-term strategy and that we are well positioned to capitalise on our aggregated and curated sports-centric entertainment offering, leveraging the evolving trends across the media and consumer landscape. These results are especially impressive given the years-long challenges Fubo has faced as a result of what we believe have been anticompetitive practices by The Walt Disney Company, Fox Corp and Warner Bros Discovery. As evident in the antitrust lawsuit we filed against these parties last month, their proposed sports streaming joint venture is only the latest example of the pernicious practices they have inflicted to suppress our business and harm consumers. We are asking for an opportunity to compete fairly as a business, and to offer consumers a streaming option that gives them the channels they want, and at a fair price. Going forward, despite these challenges, consumers should still expect a compelling sports-centric entertainment offering, and investors should expect Fubo to continue to execute well against our stated business objectives.”
“Fubo enters 2024 with good momentum and with meaningful improvements across just about every facet of our business, reaffirming our confidence in our 2025 positive cash flow goal,” added Edgar Bronfman Jr, executive chairman at Fubo. “We expect both top-line growth across revenue and subscribers as well as further leverage in our expenses. Fubo continues to execute on our long-term strategy to provide an aggregated and curated sports-centric entertainment offering to our customers. We believe that a sports-first live TV streaming experience should benefit all market participants, and we strive to be champions of the consumer on this front.”