FuboTV Inc. (NYSE: FUBO), known as Fubo, a premier sports-focused live TV streaming platform, released its financial results for Q4 and FY 2023 ending December 31st. The company surpassed expectations across vital financial and operational metrics in North America, registering substantial year-over-year (YoY) growth in revenue and subscribers during the fourth quarter. Fubo closed the quarter with a remarkable 1.618 million paid subscribers, marking a 12% YoY increase, and a total revenue of $402 million, indicating a 29% YoY rise. Advertising revenue also saw a double-digit surge, reaching $38.6 million, up by 15% YoY for the quarter. Despite challenges in the ad market for the year, Fubo managed a 14% YoY growth in ad revenue, totaling $114 million for 2023. Additionally, the company achieved a record-high $86.65 average revenue per user (ARPU), up by 15% YoY, and a 10% gross margin, showing an 888 basis points (bps) YoY improvement.
In the Rest of World (ROW) segment, Fubo reported $8.4 million in total revenue, up by 18% YoY, and 406,000 paid subscribers, a decrease of 3% YoY for the quarter. The ROW results include the performance of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
During the quarter, Fubo showed YoY improvements in net loss amounting to $25 million and a $19 million reduction in net cash used in operating activities. The company also experienced a $15 million increase in Free Cash Flow and a $25 million boost in Adjusted EBITDA (AEBITDA) compared to Q4 2022, attributing these enhancements to its ongoing efforts in driving operating leverage across the business, marking the fourth consecutive quarter of YoY improvements in these metrics.
Fubo maintained a robust balance sheet and healthy liquidity position, concluding the quarter with $251 million in cash, cash equivalents, and restricted cash. The company is confident in its liquidity to fund its current operating plan and aims to achieve its 2025 positive cash flow objective.
Guidance:
North America: For Q1 2024, Fubo forecasts 1.415 million-1.435 million paid subscribers, representing 11% YoY growth at the midpoint, and $365 million-$375 million total revenue, indicating a 17% YoY growth at the midpoint. For FY 2024, Fubo predicts 1.665 million-1.685 million paid subscribers, marking a 4% YoY growth at the midpoint, and $1.505 billion-$1.525 billion total revenue, indicating a 13% YoY growth at the midpoint.
Fubo anticipates revenue growth to outpace subscriber growth, reflecting its expectation of ARPU expansion due to improved unit economics and margin gains. The subscriber growth outlook considers industry volatility and Fubo’s intent to maintain discipline in subscriber acquisition costs relative to monetization.
ROW: For Q1 2024, Fubo forecasts 380,000-385,000 paid subscribers, representing a 1% YoY growth at the midpoint, and $6.6 million-$8.6 million total revenue, indicating a -2% YoY decline at the midpoint. For FY 2024, Fubo predicts 390,000-410,000 paid subscribers, representing a -2% YoY decline at the midpoint, and $31 million-$35 million total revenue, indicating a 2% YoY growth at the midpoint.
Comprehensive Q4 and FY 2023 results are available in Fubo’s shareholder letter on the company’s IR site.
CEO David Gandler stated, “The fourth quarter capped a great year for Fubo…”. He emphasized the company’s long-term strategy and its ability to capitalize on evolving trends in the media and consumer landscape despite challenges faced due to anticompetitive practices by certain entities.
Edgar Bronfman Jr., Executive Chairman of Fubo, expressed confidence in the company’s momentum and improvements across various aspects of its business, reaffirming its 2025 positive cash flow goal.
A live conference call with CEO David Gandler and CFO John Janedis is scheduled for 8:30 a.m. ET today, followed by a Q&A session. The webcast will be available on Fubo’s investor relations website, with an archived replay accessible post the call. Participants are advised to join the call 10 minutes in advance.
