FuboTV Stock Surges on Strong Q3 Results
Beating Expectations
FuboTV Inc.’s (NYSE:FUBO) stock soared in the premarket session after the company reported impressive fiscal third-quarter 2024 results. The sports-first live TV streaming platform saw sales grow 20.1% year over year to $386.21 million, surpassing the analyst consensus estimate of $376.77 million.
Financial Highlights
The company’s adjusted EPS loss of 8 cents also beat the analyst consensus estimate of 18 cents loss. Furthermore, FuboTV’s adjusted EBITDA margin loss narrowed to (7.1)% from (19.1)% year over year.
North America Streaming: A Bright Spot
Revenue from North America Streaming grew 21% year over year to $377 million, driven by a 9% increase in paid subscribers to 1.61 million. Average revenue per user (ARPU) rose 2.5% year over year to $85.64.
Rest of the World Streaming: A Mixed Bag
Revenue from Rest of the World Streaming jumped 6% year over year to $8.9 million, despite an 8.1% decline in paid subscribers to 378,000. However, ARPU grew 7.5% year over year to $7.50.
Cash Reserves and Outlook
As of September 30, 2024, FuboTV held $152.3 million in cash and equivalents. The company expects fourth-quarter revenue of $434 million–$455 million and fiscal 2024 revenue of $1.613 billion-$1.635 billion, surpassing consensus estimates.
CEO’s Vision
Co-founder and CEO David Gandler emphasized the company’s focus on delivering a high-quality, innovative, and frictionless experience for users, which includes personalization across content and price.
Stock Performance
FuboTV’s stock has struggled this year, plummeting 45% year-to-date due to intense competition from major players like Walt Disney Co, Fox Corp, and Warner Bros. Discovery, Inc. However, the stock traded higher by 1.71% at $1.77 premarket on Friday.
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