FuboTV, Inc. (NYSE: FUBO) is engaged as a sports-focused live TV streaming platform, with operations across U.S., Canada, Spain and France. Shares of the TV streaming provider are rallying 35% through afternoon trading on Friday, May 5, 2023. Over the past three months, FuboTV has seen average daily volume of 12.7 million shares. However, volume of 47.7 million shares or dollar volume of around $71.55 million, has already exchanged hands through late trading.
Shares of FuboTV are gaining after the company reported first quarter 2023 financial results. FuboTV displayed impressive growth in Q1 2023, exceeding guidance and achieving a 22% YoY increase in subscribers and a 34% revenue growth for North America. The company also improved cash usage and strengthened its balance sheet, ending the quarter with $364.8 million in cash and equivalents. Fubo has no plans to utilize the ATM program, as it expects positive cash flow by 2025.
Key Q1 2023 highlights include:
- Surpassing NA subscriber guidance of 1.15 million and revenue guidance of $297.5 million by 135K subscribers and $19 million, respectively.
- Expanding NA ARPU by 8% YoY to $76.79.
- Attracting a record 13 million viewership hours from 100+ FAST channels, contributing to margin expansion.
- Posting positive Gross Profit and a 1,075 bps YoY improvement in Gross Margin.
- Improving Net Loss by $45 million and net cash used in operating activities by $42 million YoY.
- Progressing toward cash flow and Adjusted EBITDA (AEBITDA) positive by 2025, with Q1 AEBITDA improvement of $36 million and Q1 Free Cash Flow improvement of $40 million compared to Q1 2022.
Fubo ranks #1 in Customer Satisfaction among Live TV Streaming Providers according to J.D. Power, thanks to its growing market share and users spending over 100 hours per month on the platform. The company rebranded to Fubo in March, reflecting its diverse offerings, and launched a national advertising campaign featuring Kevin Garnett and Mark Sanchez.
Q1 performance showcased Fubo’s 37% YoY growth in North American subscription revenue, driven by ARPU expansion and strong subscriber growth, as well as lower-than-expected churn. North American advertising revenue remained flat, but acceleration is anticipated in Q2. Efficiency was demonstrated through a reduction in sales and marketing as a percentage of revenue, from ~18% to ~13%.
“We are pleased with Fubo’s execution to start 2023 – beating expectations across our KPIs – and our increased North America guidance for the year reflects our confidence in our continued leadership in streaming,” said David Gandler, co-founder and CEO, Fubo. “In addition, we remain confident in our path to generate positive cash flow in 2025. While the macro uncertainty continues, the second quarter has started well, with customer engagement ongoing and advertising accelerating sequentially. We look forward to keeping shareholders updated on our progress in the quarters to come.”
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