FuboTV Inc (FUBO) Exceeds Q4 Guidance with Strong Subscriber and Revenue Growth
Subscribers: Reached 1.618 million in North America, a 12% increase year-over-year.
Revenue: Grew by 29% year-over-year in North America to $402 million, surpassing guidance.
ARPU: Expanded by 15% to an all-time high of $86.65 in North America.
Net Loss: Improved by $25 million year-over-year, with a reduced net loss margin.
Adjusted EBITDA: Improved by $25 million compared to Q4 2022, indicating progress towards profitability.
Free Cash Flow: Saw a $15 million improvement over the same quarter in the previous year.
On March 1, 2024, FuboTV Inc (NYSE:FUBO) released its 8-K filing, detailing the company's financial performance for the fourth quarter and full-year 2023. FuboTV, a sports-first live TV streaming company, continues to grow its subscriber base, emphasizing its commitment to providing premium sports, news, and entertainment content through a single app. The company's strategy to optimize operations and invest in technology, including AI, has led to significant improvements in key financial metrics.
Financial Performance Overview
FuboTV's Q4 2023 results demonstrated robust growth, with North American revenue hitting $402 million, a 29% increase from the previous year. Subscription revenue in this region grew by 30%, while advertising revenue saw a 15% increase. The company's gross margin improved significantly by 888 basis points year-over-year to 10%. The average revenue per user (ARPU) in North America reached a record high of $86.65, a 15% increase from the previous year, reflecting the company's ability to monetize its subscriber base effectively.
Despite these positive trends, FuboTV reported a net loss from continuing operations of $71 million for the quarter, which translates to an earnings per share (EPS) loss of $0.24. However, this was an improvement compared to a net loss of $95.9 million, or an EPS loss of $0.48, in the fourth quarter of 2022. Adjusted EPS improved to a loss of $0.17, compared to an adjusted EPS loss of $0.39 in Q4 2022.
Operational Highlights and Future Outlook
Operationally, FuboTV has made strides in ad sales and content optimization. North America ad revenue grew by 15% year-over-year to $38.6 million in Q4, and the company ended the year with 158 FAST channels on the platform. Subscriber-related expenses (SRE) decreased as a percentage of revenue, indicating improved leverage over content costs.
The company's product roadmap for 2023 included significant progress on the roll-out of its global Unified Platform (UP), which allows for rapid iteration of the product experience and sets the stage for future enhancements, including AI features. FuboTV's guidance for FY 2024 projects subscriber growth of 4% year-over-year at the midpoint and revenue growth of 13% year-over-year at the midpoint, reflecting continued ARPU expansion and improved unit economics.
FuboTV enters 2024 with a strong balance sheet, ending the quarter with $251 million in cash, cash equivalents, and restricted cash. The company remains focused on providing a differentiated consumer experience while balancing profitability targets and growth, with the goal of reaching positive cash flow in 2025.
For more detailed financial information and future guidance, investors and stakeholders are encouraged to review FuboTV's full set of financial statements and SEC filings, available on the investor relations section of their website at ir.fubo.tv.
Conclusion
Overall, FuboTV Inc (NYSE:FUBO) has shown a strong performance in Q4 2023, with significant year-over-year growth in subscribers, revenue, and ARPU in North America. The company's strategic investments and operational efficiencies are paving the way for continued growth and progress towards profitability. With a solid balance sheet and a clear focus on enhancing the streaming experience for consumers, FuboTV is well-positioned to deliver long-term value to its stakeholders.
Explore the complete 8-K earnings release (here) from FuboTV Inc for further details.
This article first appeared on GuruFocus.
