fuboTV Falls 7% Despite Solid Q3 Results


Sports-focused live TV streaming service operator fuboTV Inc. (FUBO) has delivered solid third-quarter results, registering strong performance across various key financial and operational metrics. The company also announced that it had crossed 1 million subscribers since the closing of the third quarter.

Despite posting better-than-expected third-quarter results and updating its FY21 guidance, shares declined 7.1% during the extended trading session on November 9.

Solid Q3 Results

The company reported an adjusted loss of $0.59 per share, 6 cents better than analysts’ estimated loss of $0.65 per share. The company had posted an adjusted loss of $1.08 per share in the same quarter last year.

FUBO’s loss was attributed to increased expenses related to strategic investments in programming, team, technology and infrastructure.

Revenue came in at $156.69 million, up 156% year-over-year, and surpassed the Street’s estimate of $143.6 million. Similarly, subscription revenue grew 158% and advertising revenue jumped 147% year-over-year.

FUBO’s subscribers in the third quarter grew 108% year-over-year to 945,000, and the Average Revenue Per User (ARPU) per month climbed 10% to $74.54 against the year-ago period. Similarly, FUBO’s customers streamed 284 million hours of content during the third quarter, a year-over-year rise of 113%.

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Management Comments

Happy with crossing one million subscribers, the company said, “This is a tremendous milestone for the company that advances us even further towards our goal of turning passive viewers into active participants and defining a new category of interactive sports and entertainment television.”

The management added, “Engagement continues to strengthen as we add differentiated content to our offering and focus on innovating our product to meet consumer preferences. Our expansion into real-money wagering is now a reality with the launch of Fubo Sportsbook in the first state with additional states slated in the following months. This launch represents a differentiated and industry-first integration of streaming and a sports wagering product and we see ourselves in the very early innings of a massive opportunity.”

Updated Guidance

Based on the strong third-quarter performance and continued strength of the macro tailwinds, fuboTV increased its full-year fiscal 2021 outlook.

The company forecasts FY21 revenues in the range of $612 million to $617 million. It expects subscribers to grow between 1.06 million and 1.07 million by the year-end.

Further, Q4 revenues are expected in the range of $205 million to $210 million, more than the consensus estimate of $177.16 million.

Acquisition

Aiming to expand its international footprint, FUBO has announced the acquisition of France’s leading live TV streaming platform Molotov SAS. Molotov has a monthly active user base of nearly four million subscribers. The acquisition is expected to close in the first quarter of 2022, subject to closing conditions.

Target Price

The FUBO stock has a Strong Buy consensus rating based on 7 Buys and 2 Holds. The average fuboTV price target of $44.63 implies 34.7% upside potential. Shares have gained 111.7% over the past year.

Website Traffic

TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into fuboTV’s performance.

The FUBO website traffic in October recorded a 42.46% monthly increase in visits, compared to the same quarter last year. Similarly, year-to-date website traffic growth increased 46.12%, compared to the same period last year.

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