FuboTV Gaining Popularity North America, High Growth In Paid Subscribers Show

FuboTV Inc FUBO shares soared in premarket by as much as 10% after the company reported fiscal first-quarter 2024 results. Sales grew 24.0% Y/Y to $402.4 million, beating the analyst consensus estimate of $381.3 million.

Adjusted EPS loss of $(0.11) beat the analyst consensus loss estimate of $(0.21).

The company’s gross margin stood at 7%, up by 588 bps Y/Y. 

North America Streaming: Revenue grew 24% Y/Y to $394 million as paid subscribers grew 18% Y/Y to 1.511 million. Average revenue per user (ARPU) rose 10% Y/Y to $84.54.

Rest of the World Streaming: Revenue was $8.4 million, a 7% Y/Y jump, with a paid subscriber growth of 5% Y/Y to 397,000. ARPU grew by 7% Y/Y to $7.

FuboTV held $175 million in cash and equivalents as of the first quarter 2024.

“Fubo’s first quarter 2024 performance builds upon the strong momentum achieved in the prior year, with double-digit paid subscribers, total revenue, and ad revenue growth in North America,” said David Gandler, co-founder and CEO of Fubo.

The company remains confident in its antitrust lawsuit against The Walt Disney Co DIS, FOX Corp FOX, and Warner Bros. Discovery Inc WBD over a planned sports streaming joint venture. The ongoing investigation by the Department of Justice and congressional inquiries are also encouraging signs.

Outlook: FuboTV expects second-quarter revenue of $365.5 million – $376.5 million (versus consensus of $355.23 million) and fiscal 2024 revenue of $1.558 billion -$1.580 billion (prior $1.536 billion – $1.560 billion) versus consensus of $1.560 billion.

FUBO stock gained 34% in the last 12 months. Investors can gain exposure to the stock via ProShares Trust ProShares Metaverse ETF  VERS and IShares Robotics And Artificial Intelligence Multisector ETF IRBO.

Price Action: FUBO shares gave up the premarket gains and are down 5.16% at $1.46 at the last check Friday.

Photo: courtesy of FuboTv.