NEW YORK–November 03, 2023–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, 2023. The Company also raised its previously stated full year 2023 guidance for North America.
Fubo achieved double digit growth versus the prior year in North America, delivering $313 million total revenue (up 43% year-over-year) and a record 1.477 million paid subscribers (up 20% year-over-year), meaningfully exceeding third quarter 2023 guidance. The Company delivered $30.3 million in North America ad revenue during the quarter, an increase of 34% year-over-year.
Notably, Fubo expanded average revenue per user (ARPU) in North America by 17% year-over-year to a record $83.51 during the quarter.
In the Rest of World (ROW), Fubo delivered $8.4 million total revenue (up 45% year-over-year) and 411,000 paid subscribers (up 15% year-over-year). ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
Fubo continued to steadily progress over the quarter toward its 2025 positive cash flow goal. The Company achieved year-over-year improvement in net loss of $21 million and a $43 million improvement in net cash used in operating activities. Also during the quarter, Fubo achieved a $40 million improvement in Free Cash Flow and a $21 million improvement in Adjusted EBITDA (AEBITDA). These improvements were a result of ongoing efforts to drive operating leverage across the business and represent the third consecutive quarter of year-over-year improvements in these metrics. Additionally, Fubo reached 6% gross margin, a 884 bps year-over-year improvement year-over-year, as well as a 619 bps reduction in subscriber-related expenses (SRE) as a percentage of revenue to 89%, reflecting continued progress in optimizing content costs.
The Company maintained a strong balance sheet and healthy liquidity position, ending the quarter with $266 million in cash, cash equivalents, and restricted cash. Fubo believes it has sufficient liquidity to fund its current operating plan and the momentum necessary to reach its 2025 positive cash flow goal.
Looking to full year 2023, Fubo is raising revenue and paid subscriber guidance in North America. The Company now expects to close the year with $1.319 billion – $1.324 billion in total revenue, representing 34% year-over-year growth at the midpoint (from previously stated guidance of $1.260 billion – $1.280 billion), and 1.584 million – 1.599 million paid subscribers, representing 10% year-over-year growth at the midpoint (from prior guidance of 1.565 million – 1.585 million).
Complete third quarter 2023 results are detailed in Fubo’s shareholder letter available on the company’s IR site.
“Fubo’s strong third quarter exceeded guidance in North America, highlighted by an all-time high in paid subscribers as well as double digit year-over-year revenue growth,” said David Gandler, co-founder and CEO, Fubo. “As we progress toward our 2025 positive cash flow goal, we are confident that a return to content aggregation and bundling – which we long predicted – is now a reality. Fubo’s aim is to be a super aggregator, offering consumers premium content delivered through an intuitive and personalized streaming experience, at multiple price points, all in a single app.”
“Fubo’s third quarter marked continued improvements across our key performance metrics, including subscriber growth, gross margin, ARPU expansion and advertising revenue growth,” said Edgar Bronfman Jr., executive chairman, Fubo. “Looking ahead, as we raise full year 2023 guidance, we remain confident in the value proposition of our business model and believe we are well positioned to further benefit from industry trends, including the growing number of consumers subscribing to vMVPD services and the significant increase in CTV advertising.”
Live Webcast
CEO, 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 300 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 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. Learn more at https://fubo.tv