FuboTV Inc, an American streaming Television service, unveiled its Q3 2023 earnings report today, showcasing robust performance metrics that underscored the company’s growth trajectory. The report revealed a remarkable 20% year-over-year (YoY) surge in subscribers, coupled with a staggering 43% YoY revenue upswing in North America. This achievement reflects FuboTV’s steadfast commitment to bolstering unit economics and exercising prudent cost discipline.
After the report was made public, FuboTV saw a slight increase in its stock value, with 21 million shares already exchanged hands.
At the time of this publication, Fubotv Inc stock (FUBO) has witnessed a surge.
Fubotv Inc
Current Price: $2.88
Change : +0.14
Change (%): (5.12%)
Volume: 21.0M
Source: Tomorrow Events Market Data
Closing the quarter with a formidable $266 million in cash, cash equivalents, and restricted cash, FuboTV demonstrated solid financial footing. The company’s North American subscriber base for Q3 reached an impressive 1.477 million, surpassing the midpoint of their projected Q3 North American subscriber count of 1.337 million. North American Revenue soared to $313 million, showcasing a 43% surge over the previous year, and surpassing the midpoint of their guidance set at $275 million.
FuboTV Q3 REsults – Financial Highlights:
The company achieved a Gross Margin of 6%, representing an 884 basis point YoY improvement. Notably, North American Average Revenue Per User (ARPU) expanded by an impressive 17% YoY to a record-setting $83.51. Significant strides were made in optimizing content costs, as Subscriber-Related Expenses (SRE) as a percentage of revenue reduced to 89%. Additionally, the company reported a noteworthy YoY improvement in Net Loss of $21 million and a substantial $43 million enhancement in net cash used in operating activities.
FuboTV Q3 Results – Operational Highlights:
FuboTV Inc (NYSE:FUBO) delivered North American ad revenue of $30.3 million in the quarter, reflecting a substantial 34% YoY increase. Progress towards achieving positive cash flow and Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (AEBITDA) by 2025 was evident, with a Q3 AEBITDA improvement of $21 million and a Q3 Free Cash Flow improvement of $40 million, compared to Q3 2022.
Future Projections:
FuboTV Inc is optimistic about its future prospects, as evidenced by its decision to revise upwards its full-year 2023 revenue and subscriber guidance for the North American market. For FY 2023, the company projects a subscriber count ranging from 1.584 million to 1.599 million, representing a robust 10% YoY growth at the midpoint. Additionally, revenue is forecasted to range between $1.319 billion and $1.324 billion, demonstrating a substantial 34% YoY growth at the midpoint.
In Conclusion:
FuboTV Inc (NYSE:FUBO) has exhibited commendable progress across pivotal performance indicators, including substantial subscriber growth, improved gross margins, ARPU expansion, and remarkable advertising revenue growth. The company remains steadfast in its belief in the efficacy of its business model, positioning itself favorably to capitalize on prevailing industry trends.
