FuboTV Inc. (NYSE: FUBO), the leading sports-first live TV
streaming platform, today announced its financial results for the
fourth quarter and full year ended December 31, 2022, delivering
record highs in annual revenue and subscribers across its global
business and exceeding previously announced forecasts. Notably, the
company surpassed $1 billion in global annual revenue for the first
time.
In North America (NA), Fubo achieved $984 million in total
revenue (up 55% year-over-year), including $100 million in
advertising revenue, and reached 1.445 million subscribers (up 29%
year-over-year). Fubo’s fourth quarter revenue in NA was $312.1
million (up 36% year-over-year) while ad revenue was $33.6 million
during the quarter (up 30% year-over-year).
In the Rest of World (ROW), the company delivered $7.2 million
in revenue and 420,000 total paid subscribers (up 117%
year-over-year) during the fourth quarter. ROW includes the results
of Molotov, the French live TV streaming service acquired by Fubo
in December 2021.
Fubo ended the fourth quarter with $343.2 million in cash, cash
equivalents and restricted cash. The company remains confident in
its current liquidity position. The company also drove a 1,127
basis points (bps) year-over-year improvement in Net Loss Margin
and a 814 basis points (bps) year-over-year improvement in fourth
quarter Adjusted EBITDA (AEBITDA) margin for continuing
operations1. Additionally, Fubo achieved the most favorable
quarterly cash usage since becoming a publicly traded company in
October 2020.
Complete fourth quarter and full year 2022 results are detailed
in Fubo’s shareholder letter available on the company’s IR
site.
“Fubo’s fourth quarter results represent a strong finish to 2022
and an inflection point for our company supported by two very
important milestones: we surpassed $1 billion in total annual
revenue and $100 million in ad sales annual revenue for the first
time,” said David Gandler, co-founder and CEO, Fubo. “The fourth
quarter also marked our lowest level of quarterly cash usage in
Fubo’s time as a publicly-traded company and we achieved positive
gross profit. Over the course of 2022 we undertook bold measures to
position our business for today’s challenging macroeconomic
environment. We furthermore believe that Fubo’s model will prove to
be resilient, profitable and poised to continue to deliver a truly
differentiated consumer experience while providing our media
partners with a growing distribution platform.”
“Fubo delivered a record fourth quarter and full year across a
number of our key financial and operational metrics,” said Edgar
Bronfman Jr., executive chairman, Fubo. “In 2022, we added
differentiated content, including Bally Sports’ expansive portfolio
of regional sports networks, aimed at driving subscriber growth and
doubling-down on our sports-first positioning. We believe our
continued subscriber growth gives us real leverage in partner
negotiations and we are more closely examining which content aligns
with our profitability goals. Additionally, we believe our Unified
Platform initiative, which will integrate Molotov’s team and
technology, will drive further innovation enabling us to deliver a
premium experience that surprises and delights our customers. We
remain very excited about the opportunity in front of us.”
Live Webcast
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 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 mission to build the world’s leading global live TV
streaming platform with the greatest breadth of premium content and
interactivity, FuboTV Inc. (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 125 live sports, news and entertainment
networks and is the only live TV streaming platform with every
Nielsen-rated sports channel (source: Nielsen Total Viewers, 2022).
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 interactive product
features like FanView, an in-video experience showcasing live game,
team and player stats and scores in real time. Fubo was also the
first virtual MVPD to enable simultaneous viewing on up to four
screens (Multiview on Apple TV) as well the first to stream in 4K
HDR.
Ranked #1 in Customer Satisfaction among Live TV Streaming
Providers by J.D. Power (2022), Fubo has been called “a force in
sports streaming” by Forbes, “the best streaming service for sports
aficionados” by Tom’s Guide and was heralded by CNET for its “ease
of use.” Learn more at https://fubo.tv
Basis of Presentation – Continuing
Operations
On October 17, 2022, Fubo dissolved its wholly owned subsidiary,
Fubo Gaming Inc. In connection with the dissolution of Fubo Gaming,
we concurrently ceased operation of Fubo Sportsbook, our
business-to-consumer online mobile sportsbook. The results of
operations of Fubo Sportsbook, and 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. Prior
periods have been recast to conform to this presentation.
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 is defined as 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 from in the month ending the relevant period.
Users who are on a free (trial) period are not included in this
metric.
Adjusted EBITDA Adjusted EBITDA is a non-GAAP measure
defined as Net Loss from Continuing Operations, adjusted for
depreciation and amortization, stock-based compensation, income tax
benefit, other expenses, and one-time non-cash expenses.
Adjusted EBITDA Margin Adjusted EBITDA Margin is a
non-GAAP measure defined as Adjusted EBITDA divided by Revenue.
Reconciliation of Non-GAAP Financial
Measures
Certain measures used in this release, including Adjusted EBITDA
and Adjusted EBITDA Margin, 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 table includes a reconciliation of the non-GAAP
financial measures used in this press release to their most
directly comparable GAAP financial measure.
fuboTV Inc.
Reconciliation of Net Loss from
Continuing Operations to Non-GAAP Adjusted EBITDA
(in thousands)
Year-over-Year Comparison
Three Months Ended
December 31, 2022
December 31, 2021
As-Reported
As-Reported
Reconciliation of Net Loss from
Continuing Operations to Adjusted EBITDA
Net loss from continuing
operations
$ (95,915)
$ (95,442)
Depreciation and amortization
8,557
9,998
Stock-based Compensation
9,913
10,115
Other expense
2,530
2,882
Income tax benefit
(516)
(948)
Adjusted EBITDA
(75,431)
(73,395)
Adjusted EBITDA
(75,431)
(73,395)
Divide:
Revenue
319,315
231,077
Adjusted EBITDA Margin
-23.6%
-31.8%
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, market opportunity, our financial condition, our anticipated
financial performance, and our expectations regarding
profitability. 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 risks related to our pursuit and
engagement in acquisitions; our actual operating results may differ
significantly from our guidance; risks related to Fubo’s access to
capital and fundraising prospects to fund its ongoing operations
and support its planned growth; risks related to diverting
management’s attention from Fubo’s ongoing business operations to
address integration and fundraising efforts; 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 our
technology, as well as cybersecurity and data privacy-related
risks; our ability to achieve or maintain profitability; our
revenue and gross profit are subject to seasonality; our operating
results may fluctuate; our ability to attract and retain
subscribers; we may not be able to license streaming content or
other rights on acceptable terms; risks related to the prior
operation and dissolution of our wagering business; risks related
to the difficulty in measuring key metrics related to our business;
risks related to the highly competitive nature of our industry;
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, including the impact of COVID-19 on the broader market.
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 September 30, 2022 filed with the
Securities and Exchange Commission (“SEC”), our Annual Report on
Form 10-K for the year ended December 31, 2022 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.
________________ 1 See “Basis of Presentation – Continuing
Operations” below for further detail.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230227005077/en/
Investor Alison Sternberg, Fubo asternberg@fubo.tv
JCIR for Fubo ir@fubo.tv
Media Jennifer L. Press, Fubo jpress@fubo.tv
Bianca Illion, Fubo billion@fubo.tv
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