Fubo announced sixth consecutive quarter of YoY improvements

Fubo announced its financial results for the second quarter ended June 30, 2024. The second quarter marked Fubo’s sixth consecutive quarter of year-over-year (YoY) improvement in its global profitability metrics. In North America, the company exceeded guidance, concluding the second quarter with double-digit YoY growth. The platform achieved $382.7 million in total revenue, reflecting a 26% YoY increase, and reached 1.45 million paid subscribers, up 24% YoY. The average revenue per user (ARPU) expanded by 5% YoY to $85.69. The quarter was also notable for a 14% increase in ad sales revenue YoY, attributed to efforts to enhance visibility within agency holding companies during the start of the 2024 Upfront season.

In the Rest of World (ROW) segment, Fubo reported 399,000 paid subscribers, a 1% YoY increase, and $8.3 million in total revenue, up 2% YoY. ARPU in the ROW reached $7.02, a 2% YoY rise. This segment includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.

Net loss from continuing operations in the second quarter was $25.8 million, leading to an earnings per share (EPS) loss of $0.08. This was a significant improvement compared to a net loss from continuing operations of $54.2 million, or an EPS loss of $0.19 in the second quarter of 2023. Adjusted EPS in the second quarter was $0.04, compared to an adjusted EPS loss of $0.12 in the same period of the previous year. Adjusted EPS excluded the impact of stock-based compensation, amortization of intangibles, gain on extinguishment of debt, amortization of debt premium (discount), net, and certain litigation expenses.

The company achieved YoY improvements in net loss of $28.4 million, adjusted EBITDA (AEBITDA) of $19.6 million, net cash used in operating activities of $39.2 million, and free cash flow of $40.5 million. These improvements resulted from operating leverage and efficiencies throughout the business.

During the second quarter, Fubo took steps to strengthen its balance sheet and optimize its capital structure. The company raised $36.9 million in net proceeds through its At-The-Market (ATM) program and repurchased $46.9 million face value of its 2026 convertible notes at prices significantly below par value. Since the fourth quarter of 2023, Fubo reduced its debt outstanding by $80.2 million and eliminated the potential dilution associated with the repurchased convertible notes. Fubo ended the quarter with $161.3 million in cash, cash equivalents, and restricted cash. Following these debt repurchase transactions, Fubo now has no debt maturing in 2024 or 2025, $144.8 million maturing in 2026, and $177.5 million maturing in 2029.

Looking ahead for North America in the third quarter of 2024, Fubo projected 1,605,000 to 1,625,000 paid subscribers, representing 9% YoY growth at the midpoint, and $360 to $370 million in total revenue, representing 17% YoY growth at the midpoint. For the full year 2024, Fubo increased its previously announced guidance, projecting 1,725,000 to 1,745,000 paid subscribers, representing 7% YoY growth at the midpoint, and $1.570 to $1.590 billion in total revenue, representing 18% YoY growth at the midpoint.

For the Rest of World in the third quarter of 2024, Fubo projected 397,000 to 402,000 paid subscribers, representing a 3% YoY decline at the midpoint, and $8 to $9 million in total revenue, representing 1% YoY growth at the midpoint. For the full year 2024, Fubo projected 395,000 to 405,000 paid subscribers, representing a 2% YoY decline at the midpoint, and $33 to $35 million in total revenue, representing 4% YoY growth at the midpoint.

“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 David Gandler, co-founder and CEO, Fubo. “In North America, we exceeded guidance, growing North America revenue by 26% and subscribers by 24% year-over-year. We're confident we can continue this success as we remain focused on delighting our users with more flexible bundle options as part of our Super Aggregation strategy, delivered to them through a single, frictionless app. We also continue to advocate for a fairer playing field in the media industry, benefiting Fubo, our competitors and, most importantly, the American consumer.”

“Fubo continues to make marked progress in scaling our strong core business while achieving our broader strategic goals,” said Edgar Bronfman Jr., executive chairman, Fubo. “We're carefully balancing our 2025 profitability target while strategically and cost-effectively investing in subscriber growth, cutting-edge technology, new product features and engaging content. We have raised our full year 2024 guidance in North America, which reflects our continued confidence in our sports entertainment streaming business,” he concluded.