NEW YORK - FuboTV Inc. (NYSE: NYSE:FUBO), a leading sports-first live TV streaming platform, reported a narrower-than-expected loss for the first quarter, sending its shares up 9% in response to the earnings beat.
The company announced an adjusted EPS loss of $0.11, which was $0.12 better than the analyst estimate of a $0.23 loss. However, revenue for the quarter was slightly below expectations at $392.79 million compared to the consensus estimate of $393.6 million.
The company's North American operations saw significant year-over-year (YoY) growth, with a 24% increase in total revenue and an 18% rise in paid subscribers. FuboTV's ad revenue in the region also grew by 21% compared to the same quarter last year. The average revenue per user (ARPU) in North America was up 10% YoY, reaching $84.54.
For the second quarter of 2024, FuboTV projects revenue between $357.5 million and $367.5 million, surpassing the analyst consensus of $355.2 million. The company's full-year 2024 revenue guidance is set at $1.52 to $1.54 billion, slightly below the consensus of $1.56 billion.
David Gandler, co-founder and CEO of FuboTV, expressed confidence in the company's trajectory, stating, "Our results further underscore continued solid execution on our long-term strategy." He also emphasized the company's commitment to providing consumers with choice and fair pricing in a competitive streaming marketplace, referencing the ongoing antitrust lawsuit against the proposed sports streaming joint venture by major media companies.
The company's strong performance is underscored by improvements in key financial metrics, including a $10 million improvement in net cash used in operating activities and free cash flow, as well as an $18 million improvement in adjusted EBITDA compared to the first quarter of 2023. These represent the fifth consecutive quarter of YoY improvements in these metrics.
FuboTV's balance sheet remains robust, ending the quarter with $175 million in cash, cash equivalents, and restricted cash. The company believes it has sufficient liquidity to fund its operations and reach its 2025 profitability goal, barring any potential impact from the joint venture's launch.
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