Fubo Exceeded Q1 2024 Guidance in North America, Delivering 1.511M Paid Subscribers, $394M Total Revenue
Company Achieved Double Digit Year-over-Year Increases Across Key Performance Metrics in
Fubo again exceeded expectations in
In the Rest of World (ROW), the Company delivered 397,000 paid subscribers, up 5% YoY, and
Fubo achieved 7% gross margin (globally), representing a 588 (bps) YoY improvement.
Net Loss from continuing operations in the first quarter was
The Company achieved
Fubo continued to maintain a strong balance sheet and healthy liquidity position, ending the quarter with
The Company continues to believe in the merits of its antitrust lawsuit filed against The Walt Disney Company, FOX Corp. and Warner Bros. Discovery regarding the planned launch of a sports streaming joint venture (JV). Fubo is encouraged by the public support of companies such as DIRECTV and Dish, as well as the Court’s recent decision to set a hearing date for its preliminary injunction motion. Reports of the Department of Justice’s ongoing investigation and congressional inquiries are also encouraging. Fubo believes customers deserve choice, fair pricing and innovative products, and this is only possible in a competitive streaming marketplace.
Guidance
Given the many unknowns related to the potential launch of the JV, including the outcome of the antitrust lawsuit and reported
Second Quarter 2024: Fubo is projecting 1,275,000 to 1,295,000 subscribers, representing 10% YoY growth at the midpoint, and
Full Year 2024: Fubo is projecting 1,675,000 to 1,695,000 subscribers, representing 4% YoY growth at the midpoint, and
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 monetization, 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% YoY at the midpoint, and
Full Year 2024: Fubo is projecting 395,000 to 405,000 subscribers, representing a -2% YoY decline at the midpoint, and
Complete first quarter 2024 results are detailed in Fubo’s shareholder letter available on the company’s IR site.
“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
Gandler continued: “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.”
“As we look ahead, the Fubo team remains focused on the core business as well as making progress against our strategic priorities,” 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)
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 provision (benefit), other (income) expenses, and one-time non-cash expenses.
Adjusted EPS (Earnings per Share)
Adjusted EPS is a non-GAAP measure defined as Adjusted Net Loss divided by weighted average shares outstanding.
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, Adjusted EPS 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
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
As-Reported |
|
As-Reported |
||||
Subscription Revenue (GAAP) |
|
$ |
373,714 |
|
|
$ |
300,875 |
|
Advertising Revenue (GAAP) |
|
|
27,469 |
|
|
|
22,721 |
|
Subtract: |
|
|
|
|
||||
ROW Subscription Revenue |
|
|
(8,143 |
) |
|
|
(7,618 |
) |
ROW Advertising Revenue |
|
|
(244 |
) |
|
|
(206 |
) |
Total |
|
|
392,796 |
|
|
|
315,772 |
|
Divide: |
|
|
|
|
||||
Average Subscribers ( |
|
|
1,548,782 |
|
|
|
1,370,783 |
|
Months in Period |
|
|
3 |
|
|
|
3 |
|
North America Monthly Average Revenue per User (NA ARPU) |
|
$ |
84.54 |
|
|
$ |
76.79 |
|
fuboTV Inc.
Reconciliation of Net Loss from Continuing Operations to Non-GAAP Adjusted EBITDA
(in thousands)
Year-over-Year Comparison
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
As-Reported |
|
As-Reported |
||||
Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA |
|
|
|
|
||||
Net loss from continuing operations |
|
$ |
(56,329 |
) |
|
$ |
(83,368 |
) |
Depreciation and amortization |
|
|
9,261 |
|
|
|
8,842 |
|
Stock-based compensation |
|
|
12,977 |
|
|
|
13,688 |
|
Other (income) expense |
|
|
(7,097 |
) |
|
|
2,022 |
|
Income tax provision (benefit) |
|
|
113 |
|
|
|
(114 |
) |
Adjusted EBITDA |
|
|
(41,075 |
) |
|
|
(58,930 |
) |
|
|
|
|
|
||||
Adjusted EBITDA |
|
|
(41,075 |
) |
|
|
(58,930 |
) |
Divide: |
|
|
|
|
||||
Revenue |
|
|
402,347 |
|
|
|
324,374 |
|
Adjusted EBITDA Margin |
|
|
-10.2 |
% |
|
|
-18.2 |
% |
fuboTV Inc.
Reconciliation of
(in thousands)
Year-over-Year Comparison
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
As-Reported |
|
As-Reported |
||||
Net cash used in operating activities - continuing operations |
|
$ |
(67,046 |
) |
|
$ |
(77,039 |
) |
Subtract: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(108 |
) |
|
|
(102 |
) |
Capitalization of internal use software |
|
|
(3,609 |
) |
|
|
(3,816 |
) |
Purchase of intangible assets |
|
|
(540 |
) |
|
|
- |
|
Free Cash Flow |
|
|
(71,303 |
) |
|
|
(80,957 |
) |
fuboTV Inc.
Reconciliation of Net Loss Attributable to Common Shareholders to Non-GAAP Adjusted Net Loss and Adjusted EPS
(in thousands)
Year-over-Year Comparison
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
As-Reported |
|
As-Reported |
||||
Net loss attributable to common shareholders |
|
$ |
(56,010 |
) |
|
$ |
(83,613 |
) |
Subtract: |
|
|
|
|
||||
Net loss from discontinued operations, net of tax |
|
|
(255 |
) |
|
|
(256 |
) |
Net loss from continuing operations attributable to common shareholders |
|
|
(55,755 |
) |
|
|
(83,357 |
) |
|
|
|
|
|
||||
Net loss from continuing operations attributable to common shareholders |
|
|
(55,755 |
) |
|
|
(83,357 |
) |
Stock-based compensation |
|
|
12,977 |
|
|
|
13,688 |
|
Amortization of debt (premium) discount, net |
|
|
(253 |
) |
|
|
623 |
|
Amortization of intangibles |
|
|
8,893 |
|
|
|
8,426 |
|
Adjusted net loss from continuing operations |
|
|
(34,138 |
) |
|
|
(60,620 |
) |
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
||||
Basic and diluted |
|
|
299,363,298 |
|
|
|
225,461,595 |
|
|
|
|
|
|
||||
Adjusted EPS from continuing operations |
|
$ |
(0.11 |
) |
|
$ |
(0.27 |
) |
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/20240503673725/en/
Investors
asternberg@fubo.tv
JCIR for Fubo
ir@fubo.tv
Media
jpress@fubo.tv
billion@fubo.tv
Source: fuboTV