fuboTV Inc. (FUBO) stock surges as earnings, revenue surpass expectations

March 1, 2024 8:37 AM EST

fuboTV Inc. (NYSE: FUBO) shares soared 16.91% following the company's fourth-quarter results, which surpassed analyst expectations on both earnings and revenue fronts. The company reported an adjusted EPS of -$0.17, significantly beating the analyst consensus of -$0.31. Revenue for the quarter also exceeded forecasts, coming in at $410.2 million against the expected $397.66 million.

The streaming service experienced robust growth, with a 12% increase in paid subscribers YoY, ending the quarter with 1.618 million. Total revenue for the quarter was up by 29% YoY, and ad revenue also saw a substantial rise, finishing at $38.6 million, a 15% increase YoY. The company's average revenue per user (ARPU) reached an all-time high of $86.65, marking a 15% YoY improvement.

Fubo's guidance for the first quarter of 2024 indicates continued growth, with expected paid subscribers ranging between 1.415 million and 1.435 million, denoting an 11% growth at the midpoint. Total revenue is forecasted to be between $365 million and $375 million, representing a 17% increase YoY at the midpoint. For the full year 2024, the company anticipates 1.665 million to 1.685 million paid subscribers, a 4% growth YoY at the midpoint, and total revenue between $1.505 billion and $1.525 billion, reflecting a 13% increase YoY at the midpoint.

In contrast, the Rest of World (ROW) segment is expected to see a slight decline in paid subscribers for the full year 2024, with a forecasted range of 390,000 to 410,000, which is a -2% change YoY at the midpoint. However, total revenue for ROW is projected to grow by 2% YoY at the midpoint, with a range of $31 million to $35 million.

Fubo's CEO stated, "Our strong fourth-quarter performance and positive guidance reflect our successful strategy and the scalability of our business model. We are on track to achieve our 2025 positive cash flow goal, thanks to our disciplined approach to subscriber acquisition and monetization."

The company's solid balance sheet, with $251 million in cash, cash equivalents, and restricted cash, positions it well to fund its current operating plan and reach its long-term financial goals. The market's positive reaction underscores investor confidence in Fubo's growth trajectory and operational improvements.

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