NEW YORK, March 01, 2024–(BUSINESS WIRE)–FuboTV Inc. (d/b/a/ Fubo) (NYSE: FUBO), the leading sports-first live TV streaming platform, today announced its financial results for the fourth quarter and full year ended December 31, 2023.
The Company exceeded guidance across key financial and operating metrics in North America, posting double digit year-over-year (YoY) revenue and subscriber growth during the fourth quarter. Fubo ended the quarter with 1.618 million paid subscribers, up 12% YoY, and $402 million in total revenue, up 29% YoY. Ad revenue in the quarter also increased double digits, closing at $38.6 million, up 15% YoY. Furthermore, ad revenue grew 14% for the full year 2023, totaling $114 million, despite an overall challenged ad market in 2023. Additionally, Fubo achieved an all-time high $86.65 average revenue per user (ARPU), up 15% YoY, and 10% gross margin, representing an 888 basis points (bps) YoY improvement.
In the Rest of World (ROW), Fubo delivered $8.4 million total revenue, up 18% year-over-year, and 406,000 paid subscribers, down 3% year-over-year, during the quarter. ARPU was $6.81, up 12% YoY. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
During the quarter, Fubo achieved YoY improvement in net loss of $25 million and a $19 million improvement in net cash used in operating activities. Fubo also achieved a $15 million improvement in Free Cash Flow and a $25 million improvement in Adjusted EBITDA (AEBITDA), when compared to the fourth quarter of 2022. These improvements were a result of the Company’s ongoing efforts to drive operating leverage across the business, and represent the fourth consecutive quarter of YoY improvements in these metrics.
Fubo continued to maintain a strong balance sheet and healthy liquidity position, ending the quarter with $251 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.
Guidance
North America
For the first quarter 2024, Fubo is forecasting 1.415 million-1.435 million paid subscribers, representing 11% YoY growth at the midpoint, and $365 million-$375 million total revenue, representing 17% YoY growth at the midpoint.
For the full year 2024, Fubo is guiding to 1.665 million-1.685 million paid subscribers, representing 4% YoY growth at the midpoint, and $1.505 billion-$1.525 billion total revenue, representing 13% YoY growth at the midpoint.
Fubo’s projection of revenue growth outpacing subscriber growth reflects the Company’s continued expectation of ARPU expansion as the result of improved unit economics and margin gains. Subscriber growth reflects conservatism in the Company’s outlook and, in particular, exposure to potential industry volatility, as well as Fubo’s intention to maintain discipline in subscriber acquisition costs relative to monetization.
ROW
For the first quarter 2024, the Company is forecasting 380,000-385,000 paid subscribers, representing 1% YoY growth at the midpoint, and $6.6 million-$8.6 million total revenue, representing a -2% YoY decline at the midpoint.
For the full year 2024, Fubo is guiding to 390,000-410,000 paid subscribers, representing a -2% YoY decline at the midpoint, and $31 million-$35 million total revenue, representing 2% YoY growth at the midpoint.
Complete fourth quarter and full year 2023 results are detailed in Fubo’s shareholder letter available on the company’s IR site.
“The fourth quarter capped a great year for Fubo, as we again exceeded guidance across key financial and operational metrics,” said David Gandler, co-founder and CEO, Fubo. “Our strong results in North America included 12% year-over-year growth in subscribers, 29% year-over-year revenue growth and a record $86.65 average revenue per user (ARPU). The quarter also marked a healthy year-over-year improvement in profitability and cash usage, reflecting the success of our continuing initiatives focused on adding efficiency across our operations. We remain confident in achieving our 2025 positive cash flow goal.”
Gandler continued: “The results for the fourth quarter and full year 2023 demonstrate that Fubo continues to execute on our long-term strategy and that we are well positioned to capitalize on our aggregated and curated sports-centric entertainment offering, leveraging the evolving trends across the media and consumer landscape. These results are especially impressive given the years-long challenges Fubo has faced as a result of what we believe have been anticompetitive practices by The Walt Disney Company, FOX Corp. and Warner Bros. Discovery. As evident in the antitrust lawsuit we filed against these parties…
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