Company Raises Full Year 2024 Guidance in
North America
FuboTV Inc. (d/b/a/ Fubo) (NYSE: FUBO), the leading sports-first
live TV streaming platform, today announced its financial results
for the second quarter ended June 30, 2024. The second quarter
marked Fubo’s sixth consecutive quarter of year-over-year (YoY)
improvement in its global profitability metrics.
In North America, the Company exceeded guidance, ending the
second quarter with double digit YoY growth, delivering $382.7
million in total revenue, up 26% YoY, and 1.45 million paid
subscribers, up 24% YoY. Average revenue per user (ARPU) expanded
5% YoY to $85.69. The quarter was also highlighted by a 14%
increase in ad sales revenue YoY as the result of efforts to
increase visibility within agency holding companies continued
during the start of the 2024 Upfront season.
In the Rest of World (ROW), the Company delivered 399,000 paid
subscribers, up 1% YoY, and $8.3 million total revenue, up 2% YoY,
during the quarter. ARPU reached $7.02, up 2% YoY. ROW includes the
results of Molotov, the French live TV streaming service acquired
by Fubo in December 2021.
Fubo states its key metrics on a YoY basis given the seasonality
of sports content.
Net Loss from continuing operations in the second quarter was
$25.8 million, leading to an earnings per share (EPS) loss of
$0.08. This compares favorably to a Net Loss from continuing
operations of $54.2 million, or an EPS loss of $0.19 in the second
quarter of 2023. Adjusted EPS in the second quarter was $0.04,
compared to an adjusted EPS loss of $0.12 in the second quarter of
2023. Adjusted EPS excludes the impact of stock-based compensation,
amortization of intangibles, gain on extinguishment of debt and
amortization of debt premium (discount), net, and certain
litigation expenses.
Notably, the Company achieved YoY improvements in Net Loss of
$28.4 million, Adjusted EBITDA (AEBITDA) of $19.6 million, Net cash
used in operating activities of $39.2 million and Free Cash Flow of
$40.5 million. These improvements were the result of operating
leverage and efficiencies throughout the business.
Fubo took steps during the second quarter to bolster its balance
sheet and optimize its capital structure. The Company raised $36.9
million in net proceeds through its At-The-Market (ATM) program. In
addition, Fubo repurchased $46.9 million face value of its 2026
convertible notes at prices significantly below par value. Since
the fourth quarter of 2023, the Company has reduced its level of
debt outstanding by $80.2 million while also eliminating the
potential dilution associated with the repurchased convertible
notes. This evidences Fubo’s continued commitment to judiciously
reducing its leverage as well as improving the quality of its
balance sheet. Fubo ended the quarter with $161.3 million in cash,
cash equivalents and restricted cash on hand. Following the debt
repurchase transactions described above, Fubo now has no debt
maturing in 2024 or 2025, $144.8 million maturing in 2026 and
$177.5 million maturing in 2029.
Guidance
North America
Third Quarter 2024: Fubo is projecting 1,605,000 to 1,625,000
paid subscribers, representing 9% YoY growth at the midpoint, and
$360 to $370 million total revenue, representing 17% YoY growth at
the midpoint.
Full Year 2024: Fubo is increasing previously announced
guidance, now projecting 1,725,000 to 1,745,000 paid subscribers,
representing 7% YoY growth at the midpoint, and $1.570 to $1.590
billion total revenue, representing 18% YoY growth at the
midpoint.
Our guidance excludes the potential impact of our ongoing
antitrust litigation, including the launch of Venu Sports (See
“Risks related to Venu Sports” below).
ROW
Third Quarter 2024: Fubo is projecting 397,000 to 402,000 paid
subscribers, representing 3% YoY decline at the midpoint, and $8 to
$9 million total revenue, representing 1% YoY growth at the
midpoint.
Full Year 2024: Fubo is projecting 395,000 to 405,000 paid
subscribers, representing 2% YoY decline at the midpoint, and $33
to $35 million total revenue, representing 4% YoY growth at the
midpoint.
Complete second quarter 2024 results are detailed in Fubo’s
shareholder letter available on the company’s IR site.
“Fubo delivered excellent results in the second quarter of 2024,
despite the Warner Bros. Discovery content drop, achieving our
sixth consecutive quarter of year-over-year improvement in our
global profitability metrics,” said David Gandler, co-founder and
CEO, Fubo. “In North America, we exceeded guidance, growing North
America revenue by 26% and subscribers by 24% year-over-year. We're
confident we can continue this success as we remain focused on
delighting our users with more flexible bundle options as part of
our Super Aggregation strategy, delivered to them through a single,
frictionless app. We also continue to advocate for a fairer playing
field in the media industry, benefiting Fubo, our competitors and,
most importantly, the American consumer.”
“Fubo continues to make marked progress in scaling our strong
core business while achieving our broader strategic goals,” said
Edgar Bronfman Jr., executive chairman, Fubo. “We're carefully
balancing our 2025 profitability target while strategically and
cost-effectively investing in subscriber growth, cutting-edge
technology, new product features and engaging content. We have
raised our full year 2024 guidance in North America, which reflects
our continued confidence in our sports entertainment streaming
business.”
Risks Related to Venu Sports
Given the many unknowns related to the potential launch of Venu
Sports (“Venu”), the proposed sports streaming joint venture
between the Walt Disney Company, Fox Corporation, and Warner Bros.
Discovery, including the outcome of our antitrust lawsuit and the
Department of Justice’s reported investigation, our guidance and
other statements in this letter with respect to Fubo’s financial
condition and our anticipated financial performance in future
periods do not reflect any potential impact of the launch to our
business. Risks related to Venu and the related litigation are
described in our filings with the Securities and Exchange
Commission, including our Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 2024, our Quarterly Report on Form
10-Q for the quarterly period ended June 30, 2024 to be filed with
the SEC, and our other periodic filings.
Live Webcast
CEO, Gandler and CFO, John Janedis will host a live conference
call today at 8:30 a.m. ET to deliver brief remarks followed by
Q&A. The live webcast will be available on the Events &
Presentations page of Fubo’s investor relations website. An
archived replay will be available on Fubo’s website following the
call. Participants should join the call 10 minutes in advance to
ensure that they are connected prior to the event.
About Fubo
With a global mission to aggregate the best in TV, including
premium sports, news and entertainment content, through a single
app, FuboTV Inc. (d/b/a Fubo) (NYSE: FUBO) aims to transcend the
industry’s current TV model. The company operates Fubo in the U.S.,
Canada and Spain and Molotov in France.
In the U.S., Fubo is a sports-first cable TV replacement product
that aggregates more than 400 live sports, news and entertainment
networks and is the only live TV streaming platform with every
Nielsen-rated sports channel (source: Nielsen Total Viewers, 2023).
Leveraging Fubo’s proprietary data and technology platform
optimized for live TV and sports viewership, subscribers can engage
with the content they are watching through an intuitive and
personalized streaming experience. Fubo has continuously pushed the
boundaries of live TV streaming. It was the first virtual MVPD to
launch 4K streaming and MultiView, which it did years ahead of its
peers, as well as Instant Headlines, a first-of-its-kind AI feature
that generates contextual news topics as they are reported live on
air.
Learn more at https://fubo.tv
Basis of Presentation – Continuing
Operations
In connection with the dissolution of Fubo Gaming, Inc. and
termination of Fubo Sportsbook, the assets and liabilities and the
operations of our former wagering reportable segment are presented
as discontinued operations in our consolidated financial
statements. With respect to our continuing operations, we operate
as a single reportable segment. Financial information presented in
this release reflects Fubo’s results on a continuing operations
basis, which excludes our former wagering reportable segment.
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 North
America when compared to ROW due to our current subscription
pricing models and advertising monetization in the two geographic
regions.
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure defined as Net Loss from
Continuing Operations, adjusted for depreciation and amortization,
stock-based compensation, certain litigation expenses, income tax
provision (benefit), other (income) expenses, and one-time non-cash
expenses. Certain litigation expenses consists of legal expenses
and related fees for specific proceedings that we have determined
arise outside of the ordinary course of business and do not
consider representative of our underlying operating performance,
based on the several considerations which we assess regularly,
including: (1) the frequency of similar cases that have been
brought to date, or are expected to be brought in the future; (2)
matter-specific facts and circumstances, such as the unique nature
or complexity of the case and/or remedy(ies) sought, including the
size of any monetary damages sought; (3) the counterparty involved;
and (4) the extent to which management considers these amounts for
purposes of operating decision-making and in assessing operating
performance..
Adjusted EBITDA Margin
Adjusted EBITDA Margin is a non-GAAP measure defined as Adjusted
EBITDA divided by Revenue.
Adjusted EPS (Earnings per Share)
Adjusted EPS is a non-GAAP measure defined as Adjusted Net Loss
divided by weighted average shares outstanding.
Adjusted Net Loss
Adjusted Net Loss is a non-GAAP measure defined as Net Loss
Attributable to Common Shareholders, adjusting for discontinued
operations, stock-based compensation, change in fair value of
warrants, amortization of debt premium (discount), amortization of
intangible assets and other non-cash items, and certain litigation
expenses (as described further above, see “Adjusted EBITDA”).
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 GAAP
Advertising revenue to North America ARPU and ROW ARPU,
respectively, each of which is a key performance metric.
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
June 30, 2024
June 30, 2023
Subscription Revenue (GAAP)
$
362,936
$
288,994
Advertising Revenue (GAAP)
26,285
23,070
Subtract:
ROW Subscription Revenue
(8,049
)
(7,906
)
ROW Advertising Revenue
(257
)
(250
)
Total
380,915
303,908
Divide:
Average Subscribers (North America)
1,481,751
1,241,218
Months in Period
3
3
North America Monthly Average Revenue
per User (NA ARPU)
$
85.69
$
81.62
fuboTV Inc.
Reconciliation of Net Loss from
Continuing Operations to Non-GAAP Adjusted EBITDA
(in thousands)
Year-over-Year Comparison
Three Months Ended
June 30, 2024
June 30, 2023
Reconciliation of Net Loss from
Continuing Operations to Adjusted EBITDA
Net loss from continuing
operations
$
(25,833
)
$
(54,209
)
Depreciation and amortization
9,519
8,913
Stock-based compensation
10,308
13,056
Certain litigation expenses
4,856
-
Other income (expense)
(9,941
)
1,815
Income tax (provision) benefit
99
(121
)
Adjusted EBITDA
(10,992
)
(30,546
)
Adjusted EBITDA
(10,992
)
(30,546
)
Divide:
Revenue
390,965
312,735
Adjusted EBITDA Margin
-2.8
%
-9.8
%
fuboTV Inc.
Reconciliation of Net Cash Used in
Operating Activities - Continuing Operations to Free Cash
Flow
(in thousands)
Year-over-Year Comparison
Three Months Ended
June 30, 2024
June 30, 2023
Net cash used in operating activities -
continuing operations
$
(31,874
)
$
(71,028
)
Subtract:
Purchases of property and equipment
(208
)
(165
)
Capitalization of internal use
software
(3,221
)
(4,588
)
Free Cash Flow
(35,303
)
(75,781
)
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
June 30, 2024
June 30, 2023
Net loss attributable to common
shareholders
$
(25,272
)
$
(49,940
)
Subtract:
Net income from discontinued operations,
net of tax
106
4,259
Net loss from continuing operations
attributable to common shareholders
(25,378
)
(54,199
)
Net loss from continuing operations
attributable to common shareholders
(25,378
)
(54,199
)
Stock-based compensation
10,308
13,056
Amortization of debt (premium) discount,
net
(268
)
645
Amortization of intangibles
9,179
8,497
Gain on extinguishment of debt
(12,124
)
-
Certain litigation expenses
4,856
-
Adjusted net loss from continuing
operations
(13,427
)
(32,001
)
Weighted average shares outstanding:
Basic and diluted
311,253,856
291,720,400
Adjusted EPS from continuing
operations
$
(0.04
)
$
(0.12
)
(1)
Certain litigation expenses consist of
legal expenses and related fees for specific proceedings that we
have determined arise outside the ordinary course of business and
do not consider representative of our underlying operating
performance. For the periods presented, the adjustment included
expenses attributable to antitrust and data privacy litigation.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking statements of FuboTV
Inc. (“Fubo”) that involve substantial risks and uncertainties. All
statements contained in this press release that do not relate to
matters of historical fact are forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995, including statements regarding our business strategy and
plans, anticompetitive practices among our competitors and our
response plan, including our antitrust lawsuit against the Walt
Disney Company, Fox Corporation and Warner Brothers Discovery, our
liquidity and anticipated cash requirements, our financial
condition, and our anticipated financial performance, including
quarterly and annual guidance, expectations regarding profitability
and our cash flow and Adjusted EBITDA targets. The words “could,”
“will,” “plan,” “intend,” “anticipate,” “approximate,” “expect,”
“potential,” “believe” or the negative of these terms or other
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
the forward-looking statements that Fubo makes due to a number of
important factors, including but not limited to the following: our
ability to achieve or maintain profitability; risks related to our
access to capital and fundraising prospects to fund our financial
operations and support our planned business growth; our revenue and
gross profit are subject to seasonality; our operating results may
fluctuate; our ability to effectively manage our growth; the
long-term nature of our content commitments; our ability to renew
our long-term content contracts on sufficiently favorable terms;
our ability to attract and retain subscribers; obligations imposed
on us through our agreements with certain distribution partners; we
may not be able to license streaming content or other rights on
acceptable terms; the restrictions imposed by content providers on
our distribution and marketing of our products and services; our
reliance on third party platforms to operate certain aspects of our
business; risks related to the difficulty in measuring key metrics
related to our business; risks related to preparing and forecasting
our financial results; risks related to the highly competitive
nature of our industry; risks related to the potential launch of
the joint venture by Walt Disney Company, Fox Corporation and
Warner Brothers Discovery; risks related to our technology, as well
as cybersecurity and data privacy-related risks; risks related to
ongoing or future legal proceedings; and other risks, including the
effects of industry, market, economic, political or regulatory
conditions, future exchange and interest rates, and changes in tax
and other laws, regulations, rates and policies. Further risks that
could cause actual results to differ materially from those matters
expressed in or implied by such forward-looking statements are
discussed in our Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2024 filed with the Securities and Exchange
Commission (“SEC”), our Quarterly Report on Form 10-Q for the
quarterly period ended June 30, 2024 to be filed with the SEC, and
our other periodic filings with the SEC. We encourage you to read
such risks in detail. The forward-looking statements in this press
release represent Fubo’s views as of the date of this press
release. Fubo anticipates that subsequent events and developments
will cause its views to change. However, while it may elect to
update these forward-looking statements at some point in the
future, it specifically disclaims any obligation to do so. You
should, therefore, not rely on these forward-looking statements as
representing Fubo’s views as of any date subsequent to the date of
this press release.
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Investor Contacts
Ameet Padte, Fubo ameet@fubo.tv
JCIR for Fubo ir@fubo.tv
Media Contacts
Jennifer L. Press, Fubo jpress@fubo.tv
Bianca Illion, Fubo billion@fubo.tv
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