Fubo’s North American Business Closed Q4 2023 With Record 1.618 Million Paid Subscribers, 29% Year-Over-Year Revenue Growth; Exceeded Guidance Across Key Performance Metrics
The Company exceeded guidance across key financial and operating metrics in
In the Rest of World (ROW), Fubo delivered
During the quarter, Fubo achieved YoY improvement in net loss of
Fubo continued to maintain a strong balance sheet and healthy liquidity position, ending the quarter with
Guidance
For the first quarter 2024, Fubo is forecasting 1.415 million-1.435 million paid subscribers, representing 11% YoY growth at the midpoint, and
For the full year 2024, Fubo is guiding to 1.665 million-1.685 million paid subscribers, representing 4% YoY growth at the midpoint, and
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. 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.
ROW
For the first quarter 2024, the Company is forecasting 380,000-385,000 paid subscribers, representing 1% YoY growth at the midpoint, and
For the full year 2024, Fubo is guiding to 390,000-410,000 paid subscribers, representing a -2% YoY decline at the midpoint, and
Complete fourth quarter and full year 2023 results are detailed in Fubo’s shareholder letter available on the company’s IR site.
“The fourth quarter capped a great year for Fubo, as we again exceeded guidance across key financial and operational metrics,” said
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 capitalize 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,” said
Live Webcast
CEO, Gandler and CFO,
About Fubo
With a global mission to aggregate the best in TV, including premium sports, news and entertainment content, through a single app,
In the
Learn more at https://fubo.tv
Basis of Presentation – Continuing Operations
In connection with the dissolution of
Key Performance Metrics and Non-GAAP Measures
Paid Subscribers
We believe the number of paid subscribers is a relevant measure to gauge the size of our user base. Paid subscribers (“subscribers”) are total subscribers that have completed registration with Fubo, have activated a payment method (only reflects one paying user per plan), from which Fubo has collected payment in the month ending the relevant period. Users who are on a free (trial) period are not included in this metric.
Average Revenue per User (ARPU)
Beginning in the third quarter of 2022, Average Revenue Per User (ARPU) is calculated using GAAP Subscription revenue and
We believe ARPU provides useful information for investors to gauge the revenue generated per subscriber on a monthly basis. ARPU, with respect to a given period, is defined as total Subscription revenue and Advertising revenue recognized in such period, divided by the average daily paid subscribers in such period, divided by the number of months in such period. Advertising revenue, like Subscription revenue, is primarily driven by the number of subscribers to our platform and per-subscriber viewership such as the type of, and duration of, content watched on platform. We believe ARPU is an important metric for both management and investors to evaluate the Company’s core operating performance and measure our subscriber monetization, as well as evaluate unit economics, payback on subscriber acquisition cost and lifetime value per subscriber. In addition, we believe that presenting a geographic breakdown for North America ARPU and ROW ARPU allows for a more meaningful assessment of the business because of the significant differences in both Subscription revenue and Advertising revenue generated on a per subscriber basis in
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure defined as Net Loss from Continuing Operations, adjusted for depreciation and amortization, stock-based compensation, income tax benefit, other expenses, and one-time non-cash expenses.
Gross Profit and Gross Margin (GAAP)
Gross Profit is defined as Revenue less Subscriber related expenses and Broadcasting and transmission. Gross Margin is defined as Gross Profit divided by Revenue. We believe these measures are useful because they represent key profitability metrics for our business and are used by management to evaluate the performance of our business, including measuring the cost to deliver our product to subscribers against revenue.
Free Cash Flow
Free Cash Flow is a non-GAAP measure defined as net cash used in operating activities - continuing operations, reduced by capital expenditures (consisting of purchases of property and equipment), purchases of intangible assets and capitalization of internal use software. We believe Free Cash Flow is an important liquidity measure of the cash that is available for operational expenses, investments in our business, strategic acquisitions, and for certain other activities such as repaying debt obligations and stock repurchases. Free Cash Flow is a key financial indicator used by management. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. The use of Free Cash Flow as an analytical tool has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. Because of these limitations, Free Cash Flow should be considered along with other operating and financial performance measures presented in accordance with GAAP..
Reconciliation of Key Performance Metrics and Non-GAAP Financial Measures
Certain measures used in this release, including Adjusted EBITDA and Free Cash Flow, are non-GAAP financial measures. We believe these are useful financial measures for investors as they are supplemental measures used by management in evaluating our core operating performance. Our non-GAAP financial measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. First, these non-GAAP financial measures are not a substitute for GAAP financial measures. Second, these non-GAAP financial measures may not provide information directly comparable to measures provided by other companies in our industry, as those other companies may calculate their non-GAAP financial measures differently.
The following tables include reconciliations of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures. The tables also include reconciliations of GAAP Subscription revenue and
fuboTV Inc. Reconciliation of GAAP Subscription and Advertising Revenue to North America ARPU (in thousands, except average subscribers and average per user amounts) Year-over-Year Comparison |
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|
|
Three Months Ended |
||
|
|
|
|
|
|
|
As-Reported |
|
As-Reported |
Subscription Revenue (GAAP) |
|
|
|
|
Advertising Revenue (GAAP) |
|
38,987 |
|
33,853 |
Subtract: |
|
|
|
|
ROW Subscription Revenue |
|
(8,042) |
|
(6,892) |
ROW Advertising Revenue |
|
(382) |
|
(277) |
Total |
|
400,650 |
|
311,548 |
Divide: |
|
|
|
|
Average Subscribers ( |
|
1,541,290 |
|
1,380,956 |
Months in Period |
|
3 |
|
3 |
North America Monthly Average Revenue per User (NA ARPU) |
|
|
|
|
fuboTV Inc. Reconciliation of Net Loss from Continuing Operations to Non-GAAP Adjusted EBITDA (in thousands) Year-over-Year Comparison |
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|
|
Three Months Ended |
||
|
|
|
|
|
|
|
As-Reported |
|
As-Reported |
Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA |
|
|
|
|
Net loss from continuing operations |
|
|
|
|
Depreciation and amortization |
|
9,638 |
|
8,557 |
Stock-based compensation |
|
11,764 |
|
9,913 |
Other income (expense) |
|
(654) |
|
2,530 |
Income tax benefit |
|
(397) |
|
(516) |
Adjusted EBITDA |
|
(50,691) |
|
(75,431) |
|
|
|
|
|
Adjusted EBITDA |
|
(50,691) |
|
(75,431) |
Divide: |
|
|
|
|
Revenue |
|
410,181 |
|
319,315 |
Adjusted EBITDA Margin |
|
-12.4% |
|
-23.6% |
fuboTV Inc.
Reconciliation of (in thousands) Year-over-Year Comparison |
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|
|
Three Months Ended |
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|
|
|
|
|
|
|
As-Reported |
|
As-Reported |
Net cash used in operating activities - continuing operations |
|
|
|
|
Subtract: |
|
|
|
|
Purchases of property and equipment |
|
(696) |
|
(99) |
Capitalization of internal use software |
|
(4,407) |
|
(1,338) |
Purchase of intangible assets |
|
(693) |
|
- |
Free Cash Flow |
|
(5,853) |
|
(20,555) |
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements of
View source version on businesswire.com: https://www.businesswire.com/news/home/20240301157006/en/
Investor Contacts
asternberg@fubo.tv
JCIR for Fubo
ir@fubo.tv
Media Contacts
jpress@fubo.tv
billion@fubo.tv
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