FuboTV Inc (FUBO) Q3 2023 Earnings: Subscribers Grow by 20%, Revenue Up by 43% YoY
FuboTV Inc (NYSE:FUBO) reports 20% YoY growth in subscribers and 43% YoY revenue growth in North America.
Net loss improved by $21 million YoY, with a $43 million improvement in net cash used in operating activities.
North America ARPU expanded by 17% YoY to $83.51, marking an all-time record.
FuboTV Inc (NYSE:FUBO) maintains a strong balance sheet, ending the quarter with $266 million in cash, cash equivalents, and restricted cash.
On November 3, 2023, FuboTV Inc (NYSE:FUBO) released its Q3 2023 earnings report, revealing a 20% year-over-year (YoY) growth in subscribers and a 43% YoY revenue growth in North America. The company also reported a healthy YoY improvement in cash usage, reflecting the continued success of its initiatives focused on unit economics and cost discipline.
Financial Highlights
FuboTV Inc (NYSE:FUBO) ended the quarter with $266 million in cash, cash equivalents, and restricted cash. The company's Q3 North America subscribers reached 1.477 million, surpassing the midpoint of their Q3 NA subscriber guidance of 1.337 million. North America Revenue grew to $313 million, representing a 43% growth over the prior year period and surpassing the midpoint of their guidance of $275 million.
The company achieved a Gross Margin of 6%, a 884 bps YoY improvement. North America ARPU expanded by 17% YoY to $83.51, marking an all-time record. Subscriber-related expenses (SRE) as a percentage of revenue reduced to 89%, reflecting significant progress in optimizing content costs. The company also achieved a YoY improvement in Net Loss of $21 million and a $43 million improvement in net cash used in operating activities.
Operational Highlights
FuboTV Inc (NYSE:FUBO) delivered North America ad revenue of $30.3 million in the quarter, a 34% YoY increase. The company also made considerable progress towards its goal of positive cash flow and Adjusted EBITDA (AEBITDA) in 2025, with a Q3 AEBITDA improvement of $21 million and a Q3 Free Cash Flow improvement of $40 million, compared to Q3 2022.
Looking Ahead
Looking forward, FuboTV Inc (NYSE:FUBO) is raising its full-year 2023 revenue and subscriber guidance in North America. For FY 2023, the company is projecting 1.584 million to 1.599 million subscribers, representing 10% YoY growth at the midpoint, and revenue of $1.319 billion to $1.324 billion, representing 34% YoY growth at the midpoint.
In conclusion, FuboTV Inc (NYSE:FUBO) marked continued improvements across its key performance metrics, including subscriber growth, gross margin improvement, ARPU expansion, and advertising revenue growth. The company remains confident in the value proposition of its business model and believes it is well-positioned to further benefit from industry trends.
Explore the complete 8-K earnings release (here) from FuboTV Inc for further details.
This article first appeared on GuruFocus.
