FuboTV’s Q2 2023 Overview: $305 Million Revenue in North America, Rising Subscriber Count and Exceeded Guidance

FuboTV Records Double-Digit Year-over-Year Growth in Revenue and Subscribers in Q2.

Key Financial Highlights FuboTV’s Performance in Q2 2023

FuboTV, a sports-centric live TV streaming platform, announced its Q2 results, and below are the key highlights.

• FuboTV reported a significant increase in its North American revenue for Q2 2023, which rose 41% year-over-year to $305 million.
• The company also saw substantial growth in its paid subscriber base in North America, experiencing a 23% rise to 1,167,000.
• Despite a challenging advertising market, FuboTV boosted its advertising revenue by 5% year-over-year, leading to a total accumulation of $22.8 million for the quarter.

Shifting focus to FuboTV’s international operations, grouped under the Rest of World’s (ROW) banner, there are also positive trends.

• The revenue in these markets climbed to $8.2 million, marking a 40% year-over-year increase.
• Concurrently, the number of paid subscribers grew by 14% to 394,000.

The ROW data includes results from Molotov, a French live TV streaming service FuboTV acquired in December 2021.

Additionally, Molotov introduced its AVoD and FAST TV Services in May, featuring popular shows like

Baywatch, Starsky & Hutch, Un gars, une fille, Blood, and Culture Pub, to expand its viewer base and increase advertising revenues

Regarding its financial goals, FuboTV has made progress towards its 2025 positive free cash flow target.

• FuboTV reduced its net loss by $41 million compared to the previous year.
• The gross margin expanded to 7%, indicating a positive financial trend.
• In North America, the Average Revenue Per User (ARPU) saw a 13% increase, reaching $81.62.
• The company reported a $40 million improvement in its Q2 Adjusted EBITDA (AEBITDA) compared to Q2 2022.
• The Free Cash Flow also improved by $9 million in Q2 2023 compared to the previous year’s period.

After the quarter, FuboTV’s cash reserves amounted to $299.7 million. The company believes this will sustain its operating plan until it anticipates a positive cash flow in 2025.

FuboTV’s Projections for Q3 2023

As FuboTV enters the third quarter, the projections for North America look optimistic.

• The company forecasts its paid subscriber count to range between 1,327,000 and 1,347,000. This range suggests a potential 9% year-on-year growth, gauging from the midpoint.
• Revenue estimates are between $272.5 million and $277.5 million for the quarter, indicating a possible 25% growth compared to the previous year’s figures.

Revised Full-Year 2023 Guidance

Following this trajectory, FuboTV has revised its full-year 2023 guidance for its North American operations.

• FuboTV projects its subscriber count to fall between 1,565,000 and 1,585,000, as this forecast suggests a possible 9% year-over-year growth, considering the midpoint.
• The company’s revenue expectations range from $1.26 billion to $1.28 billion, hinting at a potential 29% growth compared to the previous year’s figures.

CEO David Gandler shared his views on the company’s performance in the first half of the year, particularly highlighting the reduction in net loss.

He also pointed out the recent additions to the platform, including over 35 regional sports networks (RSNs), more than 125 Free Ad-Supported TV (FAST) channels, and the Maximum Effort Channel, a collaboration with Ryan Reynolds and Maximum Effort.

Echoing the same, Executive Chairman Edgar Bronfman Jr. also commented on the upward trend in North America. He touched upon the evolving market trends, such as the decline in cable TV and the rising prominence of Connected TV (CTV). He expressed confidence in the company’s progress towards its 2025 profitability goal.