Fubotv Inc. ((FUBO)) has held its Q1 earnings call. Read on for the main highlights of the call.
FuboTV’s recent earnings call presented a mixed sentiment, with the company celebrating its success in surpassing subscriber forecasts and achieving revenue growth in North America. However, challenges remain, particularly with declining advertising revenue and projected declines in Q2 performance. Despite these hurdles, FuboTV’s focus on profitability and cost control has led to significant improvements in net income and EPS, though the outlook remains cautious.
Exceeding Subscriber Forecasts
FuboTV’s global streaming business exceeded expectations by delivering 1.47 million paid subscribers in North America, surpassing the Q1 guidance of 1.46 million at the high point. This achievement highlights the company’s ability to attract and retain subscribers despite a challenging market environment.
Revenue Growth in North America
The company reported total revenue of $407.9 million in North America, marking a 3.5% increase year-over-year. This growth met the revenue guidance for the region, showcasing FuboTV’s resilience and strategic focus on its core market.
Improvement in Profitability Metrics
FuboTV made significant strides in improving its global profitability metrics by more than $100 million over the trailing 12 months. This improvement underscores the company’s ongoing execution and commitment to enhancing profitability.
Net Income and EPS Improvement
The company reported a net income from continuing operations of $188 million, or $0.55 per diluted share, compared to a net loss of $56.3 million and a loss per share of $0.19 in the prior year period. Adjusted EPS loss improved to $0.02 from a loss of $0.14 a year ago, reflecting a positive turnaround in financial performance.
Progress in Cost Control and Efficiency
FuboTV’s adjusted EBITDA was negative $1.4 million, a $37 million improvement year-over-year. This progress highlights the company’s focus on cost control and efficient growth, which are crucial for long-term sustainability.
Interactive Ads Growth
Interactive ad revenues grew by 37% year-over-year, with overall ad products up 41% year-over-year for the first half. This growth indicates a successful expansion of FuboTV’s advertising capabilities and potential for future revenue streams.
Subscriber Decline in North America
Despite exceeding guidance, North American subscribers were down 2.7% year-over-year. This decline points to challenges in maintaining subscriber growth amidst competitive pressures in the streaming market.
Advertising Revenue Decline
Ad revenue for the quarter was $22.5 million, down 17% year-over-year. This decline was largely due to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks, impacting FuboTV’s advertising revenue streams.
Guidance for Q2 Decline
FuboTV’s guidance for Q2 2025 in North America projects a decline in subscribers to between 1.225 million and 1.255 million, representing a 14% year-over-year decline at the midpoint. Revenue is expected to range between $340 million and $350 million, a 10% decline at the midpoint. Additionally, the Rest of World segment anticipates a 17% subscriber decline and a revenue drop of 15% at the midpoint. These projections highlight the cautious outlook for the upcoming quarter.
In summary, FuboTV’s earnings call reflected a cautious optimism, with notable achievements in subscriber growth and profitability improvements. However, challenges such as declining advertising revenue and projected subscriber declines in Q2 underscore the need for strategic adjustments. The company’s focus on cost control and efficiency will be critical as it navigates the evolving streaming landscape.