Company Achieved Year-over-Year Improvement
of $110M in Net Loss and $99M in Adjusted EBITDA for the Trailing
Twelve Months
FuboTV Inc. (d/b/a/ Fubo) (NYSE: FUBO), the leading sports-first
live TV streaming platform, today announced its financial results
for the third quarter ended September 30, 2024. The Company,
targeting positive Free Cash Flow in 2025, delivered continued
top-line growth and bottom-line improvements, including
year-over-year (YoY) improvements in Net Loss of $110.1 million and
Adjusted EBITDA (AEBITDA) of $98.8 million for the trailing twelve
months (TTM).
Fubo exceeded revenue guidance in North America, ending the
third quarter with $377 million total revenue, up 21% YoY. The
Company achieved its third quarter subscriber goal, ending the
period with 1.613 million subscribers, up 9% YoY. Fubo’s average
revenue per user (ARPU) expanded 2.5% YoY to $85.64.
In the Rest of World (ROW), the Company delivered $8.9 million
total revenue, up 6.0% YoY, and 378,000 paid subscribers, down 8.1%
YoY. ARPU reached $7.50, up 7.5% 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 third quarter was
$54.7 million, leading to an earnings per share (EPS) loss of
$0.17. This compares favorably to a Net Loss from continuing
operations of $84.4 million, or an EPS loss of $0.29, in the third
quarter of 2023. Adjusted EPS loss in the third quarter was $0.08,
compared to an adjusted EPS loss of $0.22 in the third quarter of
2023.
In the third quarter, AEBITDA was -$27.6 million, a $33.8
million improvement when compared to the third quarter of 2023.
This reduction was a result of Fubo’s continued focus on efficient
growth and cost control.
Net cash provided by operating activities in the third quarter
was $2.4 million, a $27.4 million improvement compared to the third
quarter of 2023, and Free Cash Flow in the third quarter was -$1.1
million, an improvement of $31.3 million compared to third quarter
of 2023. These improvements, as with Fubo’s improvements in Net
Loss and AEBITDA, were a result of operating leverage and continued
efficiencies throughout the business.
Fubo ended the quarter with $152.3 million in cash, cash
equivalents and restricted cash on hand.
Guidance
North America
Fourth Quarter 2024: Fubo is projecting $426 million to $446
million total revenue, representing 9% YoY growth at the
midpoint.
Full Year 2024: Fubo is now projecting $1.580 billion to $1.600
billion total revenue, representing 19% YoY growth at the midpoint,
and 1,665,000 to 1,705,000 paid subscribers, representing 4% YoY
growth at the midpoint.
ROW
Fourth Quarter 2024: Fubo is projecting $8 million to $9 million
total revenue, representing 0% YoY growth at the midpoint.
Full Year 2024: Fubo is projecting $33 million to $35 million
total revenue, representing 4% YoY growth at the midpoint, and now
projecting 345,000 to 355,000 paid subscribers, representing a 14%
YoY decline at the midpoint.
Complete third quarter 2024 results are detailed in Fubo’s
shareholder letter available on the Company’s IR site.
“Fubo posted strong third quarter 2024 results, marked by
continued expansion on the top-line and notable improvements on the
bottom-line,” said David Gandler, co-founder and CEO, Fubo. “We
continue to prioritize the delivery of a high-quality, innovative
and frictionless experience for our users that includes
personalization across content and price. This is what streaming
should be, and it’s what compelled us to file our antitrust lawsuit
against Disney, Fox and Warner Bros. Discovery. We continue our
fight to ensure American consumers have the streaming experience
they deserve.”
“Fubo’s third quarter of 2024 was notable for ongoing subscriber
and revenue growth alongside improvements in key profitability
metrics - all important markers that give us continued confidence
in our 2025 profitability goal,” said Edgar Bronfman Jr., executive
chairman, Fubo. “In addition, we are gratified by recent wins in
our ongoing fight for a fair and competitive marketplace, including
the granting of a preliminary injunction against the proposed
sports streaming joint venture. The streaming industry remains
under constant disruption which Fubo sees as an opportunity to
build a distinctive sports entertainment streaming platform with
consumer needs at its heart.”
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 &
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 consist of legal expenses and
related fees and costs 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”).
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 EBITDA Margin, Adjusted Net Loss, 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
September 30, 2024
September 30, 2023
Subscription Revenue (GAAP)
$ 356,575
$ 289,623
Advertising Revenue (GAAP)
27,054
30,592
Subtract:
ROW Subscription Revenue
(8,696)
(8,108)
ROW Advertising Revenue
(201)
(285)
Total
374,732
311,822
Divide:
Average Subscribers (North America)
1,458,513
1,244,579
Months in Period
3
3
North America Monthly Average Revenue
per User (NA ARPU)
$ 85.64
$ 83.51
fuboTV Inc.
Reconciliation of Net Loss from
Continuing Operations to Non-GAAP Adjusted EBITDA
(in thousands)
Year-over-Year Comparison
Three Months Ended
September 30, 2024
September 30, 2023
Reconciliation of Net Loss from
Continuing Operations to Adjusted EBITDA
Net loss from continuing
operations
$ (54,684)
$ (84,485)
Depreciation and amortization
9,816
9,103
Stock-based compensation
9,324
12,707
Certain litigation expenses(1)
11,930
76
Other income (expense)
(4,143)
1,448
Income tax (provision) benefit
195
(247)
Adjusted EBITDA
(27,562)
(61,398)
Adjusted EBITDA
(27,562)
(61,398)
Divide:
Revenue
386,207
320,935
Adjusted EBITDA Margin
-7.1%
-19.1%
fuboTV Inc.
Reconciliation of Net Loss from
Continuing Operations to Non-GAAP Adjusted EBITDA (TTM)
(in thousands)
Year-over-Year Comparison
Trailing Twelve Months
Ended
September 30, 2024
September 30, 2023
Reconciliation of Net Loss from
Continuing Operations to Adjusted EBITDA
Net loss from continuing
operations
$ (207,888)
$ (317,977)
Depreciation and amortization
38,234
35,415
Stock-based compensation
44,373
49,364
Certain litigation expenses(1)
19,598
76
Other income (expense)
(21,835)
7,815
Income tax (provision) benefit
10
(998)
Adjusted EBITDA (TTM)
(127,508)
(226,305)
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
September 30, 2024
September 30, 2023
Net cash used in operating activities -
continuing operations
$ 2,444
$ (24,921)
Subtract:
Purchases of property and equipment
(1,583)
(108)
Capitalization of internal use
software
(1,984)
(4,471)
Purchase of intangible assets
-
(2,899)
Free Cash Flow
(1,123)
(32,399)
fuboTV Inc.
Reconciliation of Net Cash Used in
Operating Activities - Continuing Operations to Free Cash Flow
(TTM)
(in thousands)
Year-over-Year Comparison
Trailing Twelve Months
Ended
September 30, 2024
September 30, 2023
Net cash used in operating activities -
continuing operations
$ (96,534)
$ (192,106)
Subtract:
Purchases of property and equipment
(2,595)
(474)
Capitalization of internal use
software
(13,220)
(14,213)
Purchase of intangible assets
(1,233)
(2,899)
Free Cash Flow (TTM)
(113,582)
(209,692)
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
September 30, 2024
September 30, 2023
Net loss attributable to common
shareholders
$ (52,423)
$ (83,811)
Subtract:
Net income from discontinued operations,
net of tax
1,836
669
Net loss from continuing operations
attributable to common shareholders
(54,259)
(84,480)
Net loss from continuing operations
attributable to common shareholders
(54,259)
(84,480)
Stock-based compensation
9,324
12,707
Amortization of debt (premium) discount,
net
(348)
650
Amortization of intangibles
9,431
8,839
Gain on extinguishment of debt
(7,752)
-
Certain litigation expenses(1)
11,930
76
Adjusted net loss from continuing
operations
(31,674)
(62,208)
Weighted average shares outstanding:
Basic and diluted
331,582,813
292,693,961
Adjusted EPS from continuing
operations
$ (0.08)
$ (0.22)
(1)
Certain litigation expenses consist 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. For the periods presented, the adjustment included
expenses attributable to antitrust and data privacy litigation.
Note that in calculating Adjusted EPS, prior to the second quarter
of 2024 Fubo did not include adjustments for Certain litigation
expenses. For comparative purposes, prior quarter figures have been
recast to reflect this adjustment.
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, industry trends, anticompetitive practices among our
competitors and our response plan, including our pending antitrust
lawsuit against the defendants 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. Given the many
unknowns related to the potential launch of the defendants’ sports
streaming joint venture, including the outcome of our antitrust
lawsuit, our forward-looking statements with respect to our
anticipated financial performance in future periods, including our
profitability goals, do not reflect any potential impact of the
launch to our business. 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 June
30, 2024 filed with the Securities and Exchange Commission (“SEC”),
our Quarterly Report on Form 10-Q for the quarterly period ended
September 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241101021073/en/
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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