Fubo Closed Q2 2024 With 26% Year-over-Year Revenue Growth, 24% Year-over-Year Subscriber Growth and Exceeded Guidance in North America; Global Business Achieved 6th Consecutive Quarter of Year-over-Year Improvement in Profitability Metrics
Company Raises Full Year 2024 Guidance in
In
In the Rest of World (ROW), the Company delivered 399,000 paid subscribers, up 1% YoY, and
Fubo states its key metrics on a YoY basis given the seasonality of sports content.
Net Loss from continuing operations in the second quarter was
Notably, the Company achieved YoY improvements in Net Loss of
Fubo took steps during the second quarter to bolster its balance sheet and optimize its capital structure. The Company raised
Guidance
Third Quarter 2024: Fubo is projecting 1,605,000 to 1,625,000 paid subscribers, representing 9% YoY growth at the midpoint, and
Full Year 2024: Fubo is increasing previously announced guidance, now projecting 1,725,000 to 1,745,000 paid subscribers, representing 7% YoY growth at the midpoint, and
Our guidance excludes the potential impact of our ongoing antitrust litigation, including the launch of
ROW
Third Quarter 2024: Fubo is projecting 397,000 to 402,000 paid subscribers, representing 3% YoY decline at the midpoint, and
Full Year 2024: Fubo is projecting 395,000 to 405,000 paid subscribers, representing 2% YoY decline at the midpoint, and
Complete second quarter 2024 results are detailed in Fubo’s shareholder letter available on the company’s IR site.
“Fubo delivered excellent results in the second quarter of 2024, despite the Warner Bros. Discovery content drop, achieving our sixth consecutive quarter of year-over-year improvement in our global profitability metrics,” said
“Fubo continues to make marked progress in scaling our strong core business while achieving our broader strategic goals,” said
Risks Related to
Given the many unknowns related to the potential launch of
Live Webcast
CEO, Gandler and CFO,
About Fubo
With a global mission to aggregate the best in TV, including premium sports, news and entertainment content, through a single app,
In the
Learn more at https://fubo.tv
Basis of Presentation – Continuing Operations
In connection with the dissolution of
Key Performance Metrics and Non-GAAP Measures
Paid Subscribers
We believe the number of paid subscribers is a relevant measure to gauge the size of our user base. Paid subscribers (“subscribers”) are total subscribers that have completed registration with Fubo, have activated a payment method (only reflects one paying user per plan), from which Fubo has collected payment in the month ending the relevant period. Users who are on a free (trial) period are not included in this metric.
Average Revenue per User (ARPU)
We believe ARPU provides useful information for investors to gauge the revenue generated per subscriber on a monthly basis. ARPU, with respect to a given period, is defined as total Subscription revenue and Advertising revenue recognized in such period, divided by the average daily paid subscribers in such period, divided by the number of months in such period. Advertising revenue, like Subscription revenue, is primarily driven by the number of subscribers to our platform and per-subscriber viewership such as the type of, and duration of, content watched on platform. We believe ARPU is an important metric for both management and investors to evaluate the Company’s core operating performance and measure our subscriber monetization, as well as evaluate unit economics, payback on subscriber acquisition cost and lifetime value per subscriber. In addition, we believe that presenting a geographic breakdown for North America ARPU and ROW ARPU allows for a more meaningful assessment of the business because of the significant differences in both Subscription revenue and Advertising revenue generated on a per subscriber basis in
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP measure defined as Net Loss from Continuing Operations, adjusted for depreciation and amortization, stock-based compensation, certain litigation expenses, income tax provision (benefit), other (income) expenses, and one-time non-cash expenses. Certain litigation expenses consists of legal expenses and related fees for specific proceedings that we have determined arise outside of the ordinary course of business and do not consider representative of our underlying operating performance, based on the several considerations which we assess regularly, including: (1) the frequency of similar cases that have been brought to date, or are expected to be brought in the future; (2) matter-specific facts and circumstances, such as the unique nature or complexity of the case and/or remedy(ies) sought, including the size of any monetary damages sought; (3) the counterparty involved; and (4) the extent to which management considers these amounts for purposes of operating decision-making and in assessing operating performance..
Adjusted EBITDA Margin
Adjusted EBITDA Margin is a non-GAAP measure defined as Adjusted EBITDA divided by Revenue.
Adjusted EPS (Earnings per Share)
Adjusted EPS is a non-GAAP measure defined as Adjusted Net Loss divided by weighted average shares outstanding.
Adjusted Net Loss
Adjusted Net Loss is a non-GAAP measure defined as Net Loss Attributable to Common Shareholders, adjusting for discontinued operations, stock-based compensation, change in fair value of warrants, amortization of debt premium (discount), amortization of intangible assets and other non-cash items, and certain litigation expenses (as described further above, see “Adjusted EBITDA”).
Gross Profit and Gross Margin (GAAP)
Gross Profit is defined as Revenue less Subscriber related expenses and Broadcasting and transmission. Gross Margin is defined as Gross Profit divided by Revenue. We believe these measures are useful because they represent key profitability metrics for our business and are used by management to evaluate the performance of our business, including measuring the cost to deliver our product to subscribers against revenue.
Free Cash Flow
Free Cash Flow is a non-GAAP measure defined as net cash used in operating activities - continuing operations, reduced by capital expenditures (consisting of purchases of property and equipment), purchases of intangible assets and capitalization of internal use software. We believe Free Cash Flow is an important liquidity measure of the cash that is available for operational expenses, investments in our business, strategic acquisitions, and for certain other activities such as repaying debt obligations and stock repurchases. Free Cash Flow is a key financial indicator used by management. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. The use of Free Cash Flow as an analytical tool has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. Because of these limitations, Free Cash Flow should be considered along with other operating and financial performance measures presented in accordance with GAAP.
Reconciliation of Key Performance Metrics and Non-GAAP Financial Measures
Certain measures used in this release, including Adjusted EBITDA, Adjusted EPS and Free Cash Flow, are non-GAAP financial measures. We believe these are useful financial measures for investors as they are supplemental measures used by management in evaluating our core operating performance. Our non-GAAP financial measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. First, these non-GAAP financial measures are not a substitute for GAAP financial measures. Second, these non-GAAP financial measures may not provide information directly comparable to measures provided by other companies in our industry, as those other companies may calculate their non-GAAP financial measures differently.
The following tables include reconciliations of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures. The tables also include reconciliations of GAAP Subscription revenue and
fuboTV Inc. Reconciliation of GAAP Subscription and Advertising Revenue to North America ARPU (in thousands, except average subscribers and average per user amounts) Year-over-Year Comparison |
||||||||
|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Subscription Revenue (GAAP) |
|
$ |
362,936 |
|
|
$ |
288,994 |
|
Advertising Revenue (GAAP) |
|
|
26,285 |
|
|
|
23,070 |
|
Subtract: |
|
|
|
|
||||
ROW Subscription Revenue |
|
|
(8,049 |
) |
|
|
(7,906 |
) |
ROW Advertising Revenue |
|
|
(257 |
) |
|
|
(250 |
) |
Total |
|
|
380,915 |
|
|
|
303,908 |
|
Divide: |
|
|
|
|
||||
Average Subscribers ( |
|
|
1,481,751 |
|
|
|
1,241,218 |
|
Months in Period |
|
|
3 |
|
|
|
3 |
|
North America Monthly Average Revenue per User (NA ARPU) |
|
$ |
85.69 |
|
|
$ |
81.62 |
|
fuboTV Inc. Reconciliation of Net Loss from Continuing Operations to Non-GAAP Adjusted EBITDA (in thousands) Year-over-Year Comparison |
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|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA |
|
|
|
|
||||
Net loss from continuing operations |
|
$ |
(25,833 |
) |
|
$ |
(54,209 |
) |
Depreciation and amortization |
|
|
9,519 |
|
|
|
8,913 |
|
Stock-based compensation |
|
|
10,308 |
|
|
|
13,056 |
|
Certain litigation expenses |
|
|
4,856 |
|
|
|
- |
|
Other income (expense) |
|
|
(9,941 |
) |
|
|
1,815 |
|
Income tax (provision) benefit |
|
|
99 |
|
|
|
(121 |
) |
Adjusted EBITDA |
|
|
(10,992 |
) |
|
|
(30,546 |
) |
|
|
|
|
|
||||
Adjusted EBITDA |
|
|
(10,992 |
) |
|
|
(30,546 |
) |
Divide: |
|
|
|
|
||||
Revenue |
|
|
390,965 |
|
|
|
312,735 |
|
Adjusted EBITDA Margin |
|
|
-2.8 |
% |
|
|
-9.8 |
% |
fuboTV Inc.
Reconciliation of (in thousands) Year-over-Year Comparison |
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|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Net cash used in operating activities - continuing operations |
|
$ |
(31,874 |
) |
|
$ |
(71,028 |
) |
Subtract: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(208 |
) |
|
|
(165 |
) |
Capitalization of internal use software |
|
|
(3,221 |
) |
|
|
(4,588 |
) |
Free Cash Flow |
|
|
(35,303 |
) |
|
|
(75,781 |
) |
fuboTV Inc. Reconciliation of Net Loss Attributable to Common Shareholders to Non-GAAP Adjusted Net Loss and Adjusted EPS (in thousands) Year-over-Year Comparison |
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|
|
Three Months Ended |
||||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Net loss attributable to common shareholders |
|
$ |
(25,272 |
) |
|
$ |
(49,940 |
) |
Subtract: |
|
|
|
|
||||
Net income from discontinued operations, net of tax |
|
|
106 |
|
|
|
4,259 |
|
Net loss from continuing operations attributable to common shareholders |
|
|
(25,378 |
) |
|
|
(54,199 |
) |
|
|
|
|
|
||||
Net loss from continuing operations attributable to common shareholders |
|
|
(25,378 |
) |
|
|
(54,199 |
) |
Stock-based compensation |
|
|
10,308 |
|
|
|
13,056 |
|
Amortization of debt (premium) discount, net |
|
|
(268 |
) |
|
|
645 |
|
Amortization of intangibles |
|
|
9,179 |
|
|
|
8,497 |
|
Gain on extinguishment of debt |
|
|
(12,124 |
) |
|
|
- |
|
Certain litigation expenses |
|
|
4,856 |
|
|
|
- |
|
Adjusted net loss from continuing operations |
|
|
(13,427 |
) |
|
|
(32,001 |
) |
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
||||
Basic and diluted |
|
|
311,253,856 |
|
|
|
291,720,400 |
|
|
|
|
|
|
||||
Adjusted EPS from continuing operations |
|
$ |
(0.04 |
) |
|
$ |
(0.12 |
) |
(1) |
Certain litigation expenses consist of legal expenses and related fees for specific proceedings that we have determined arise outside the ordinary course of business and do not consider representative of our underlying operating performance. For the periods presented, the adjustment included expenses attributable to antitrust and data privacy litigation. |
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements of
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806262331/en/
Investor Contacts
ameet@fubo.tv
JCIR for Fubo
ir@fubo.tv
Media Contacts
jpress@fubo.tv
billion@fubo.tv
Source: fuboTV