10 Key Takeaways From FuboTV's Q4 Earnings

FuboTV Inc’s FUBO stock is an “inexpensive” way to gain exposure to trend of U.S. consumers transitioning towards OTT and streaming TV, according to Needham.

The FuboTV Analyst: Laura Martin maintained a Buy rating on FuboTV, with a price target of $15.

The FuboTV Thesis: FuboTV reported its fourth-quarter revenues ahead of Needham’s estimate, but its adjusted EBITDA loss was worse than expected, Martin said in the note. The company reported quarterly sales of $231 million, which beat the consensus estimate of $213.07 million by 8.4%.

Martin mentioned 10 key takeaways from the results:

1. Another beat and raise quarter, which is “100% of the quarters since it's been a public company.”
2. Strategically, the company’s competitive position has “never been stronger.”
3. Wagering continues to be small.
4. Ad revenues grew 100% year-on-year.
5. Added 185,000 subscribers during the quarter.
6. Demonstrated strong operating leverage.
7. Upside to political revenues in 2022.
8. No international expansion.
9. Molotov acquisition closed in December, and “we expect it to add about $15mm-$20mm to FUBO's 2022 revs and about $20-$30mm to EBITDA losses.”
10. The company will add OEMs “as these drive FUBO sub growth.”

FUBO Price Action: Shares of FuboTV traded higher by 2.7% to $7.85 at the time of publication.