FuboTV Surprises with Strong Q3 Earnings, Stock Climbs
Shares of FuboTV Inc. (FUBO) were on the rise in pre-market trading on Friday after the sports-first live TV streaming platform announced better-than-expected fiscal third-quarter 2024 results. The company’s revenue jumped 20.1% year-over-year to $386.21 million, surpassing the analyst consensus estimate of $376.77 million.
The positive results were driven by strong performance in North America, where revenue climbed 21% year-over-year to $377 million. This growth was fueled by a 9% increase in paid subscribers to 1.61 million, with average revenue per user (ARPU) rising 2.5% year-over-year to $85.64. This demonstrates the company’s ability to attract and retain customers in a competitive streaming market.
While the company reported an adjusted EPS loss of 8 cents, it beat the analyst consensus estimate of an 18-cent loss. The adjusted EBITDA margin loss also narrowed to (7.1)% compared to (19.1)% in the same period last year, signaling improved profitability.
FuboTV’s Future Looks Bright
In a positive sign for investors, FuboTV’s CEO David Gandler highlighted the company’s commitment to delivering a high-quality, personalized streaming experience. He also emphasized the company’s ongoing legal battle against media giants Disney, Fox, and Warner Bros. Discovery, suggesting a determination to disrupt the industry and gain market share.
Looking ahead, FuboTV is projecting fourth-quarter revenue of $434 million–$455 million, exceeding analyst expectations of $376.77 million. For the full fiscal year 2024, the company forecasts revenue of $1.613 billion-$1.635 billion, slightly higher than its previous guidance of $1.603 billion-$1.625 billion. This optimistic outlook suggests that FuboTV is confident in its ability to maintain its growth trajectory.
Despite recent struggles against competitors like Walt Disney, Fox, and Warner Bros. Discovery, FuboTV seems to have found its footing. The company’s strong Q3 earnings and positive outlook have reassured investors, sending FUBO stock up 1.71% to $1.77 in pre-market trading on Friday. This upward movement suggests that investors believe FuboTV has the potential to carve out a significant niche in the increasingly competitive streaming landscape.
