FuboTV Inc. (NYSE:FUBO) Q3 2024 Earnings Report

FuboTV Inc. reported strong performance in Q3 2024 with significant gains in total revenue and paid subscribers. CEO David Gandler highlighted a 21% increase year-over-year in total revenue, reaching $377 million, and a 9% rise in paid subscribers to 1.613 million.

Adjusted EBITDA improved by nearly $100 million year-over-year, despite an 11% decline in advertising revenue due to tough comparisons.

Key Takeaways

• Total revenue rose by 21% year-over-year to $377 million.
• Paid subscribers increased by 9% to 1.613 million.
• Adjusted EBITDA improved by nearly $100 million year-over-year.
• Advertising revenue declined by 11% due to tough comparisons.
• Introduction of gamification features and standalone subscriptions.
• An ongoing antitrust lawsuit against major media companies has a trial set for October 2025.

Company Outlook

• Q4 2024 North America subscriber projections are between 1.665 million and 1.705 million.
• Q4 revenue guidance ranges from $426 million to $446 million.
• Full-year revenue guidance is set at $1.58 billion to $1.60 billion.
• The Rest of World segment anticipates a decline in subscribers, estimating 345,000 to 355,000 for Q4.

Bearish Highlights

• Advertising revenue saw a decrease of 11%.
• The Rest of World segment faces a reduction in subscribers.

Bullish Highlights

• Strong growth in revenue and subscribers.
• Positive Q4 outlook with improvements in ad ARPU anticipated.
• New premium offerings expected to enhance margin dollars.

Misses

• Missed ad ARPU growth due to absence of Discovery Scripts content.
• Year-over-year comparisons posed challenges.

Q&A Highlights

• Fubo Free's initial availability is limited to manage consumer behavior.
• Plans to position Fubo Free in front of the paywall in the future.
• Confidence in the virtual MVPD business model despite traditional cable declines.
• A 20% increase in political ad revenue this year.

FuboTV's third quarter showcased its ability to grow amid challenges with strategic innovation aimed at enhancing competitiveness. While facing declines in advertising revenue, optimism remains for future performance and growth in the subscriber base.

InvestingPro Insights

FuboTV's quarterly performance aligns with key metrics, noting 21% revenue growth and a 26.09% stock return over the last month. However, cash utilization raises concerns, as analysts predict no profitability for the year.

Full transcript – Fubotv Inc (FUBO) Q3 2024

Operator: Ladies and gentlemen, thank you for standing by. My name is Desiray, and I will be your conference operator today…

David Gandler: Thank you, Ameet. Good morning, and thank you all for joining us today to discuss Fubo's Third Quarter results…

John Janedis: Thank you, David, and good morning, everyone. I am pleased with the results for the third quarter…

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