Is FuboTV a Hidden Gem? Analyst's Latest Rating Sparks Curiosity

Needham analyst Laura Martin maintained a Buy rating on FuboTV Inc FUBO with a price target of $4.

On Thursday, the analyst hosted a client lunch with Dina Roman, SVP of ad sales at FuboTV. As Dina looks forward to 2024, she sees key CTV ad trends.

First-party data is becoming increasingly crucial for brands, especially now that Cookie deprecation will begin (finally) in 1Q24.

There is more pressure on FUBO (and other CTV ad units) to tie CTV ads to a deliverable, such as driving a search or buying the product online.

Creative versioning and personalization using different versions of text, audio, video, and still images.

FUBO's strong ad growth in 3Q23 was driven by better audience targeting from using first-party data alongside third-party data, better ad personalization for each viewer, and innovative ad units, maximizing FUBO's pricing power.

Of 3Q23 total ad revenue, ads sold through FUBO's direct sales force (i.e., FTEs) were 20% of the total (up from 6% two years ago), and programmatic ads were 80%. 

Ad revenue generated by the direct sales force grew to triple-digit Y/Y in FY23. FUBO's strongest ad verticals in 3Q were retail and e-commerce, followed by autos.

The Olympics in 2024 in France should aid FUBO because the company owns an ad-driven streaming service in France. 

The analyst projects Q4 revenue of $398 million.

Price Action: FUBO shares traded higher by 1.10% at $3.24 on the last check Friday.