FuboTV Slips 4.5% on Mixed Q4 Results

American sports-focused live TV streaming service fuboTV Inc. (FUBO) delivered mixed fourth-quarter results, beating revenue but missing earnings expectations. Following the news, shares slipped 4.5% during the extended trading session, continuing its downward spiral from the day trading when the stock lost 4.9% to close at $7.62 on February 23.

Notably, fuboTV added 185,000 net subscribers in Q4 and ended the year with 1.13 million total paid subscribers. Further, fuboTV’s customers streamed 404 million hours of content during Q4, growing 96% compared to the same period last year. What’s more, FUBO’s total Average Revenue Per User (ARPU) per month grew 8% year-over-year to $74.52.

fuboTV exceeded its own preliminary results reported on January 10 on three metrics, namely total revenue, paid subscribers, and advertising revenue.  

Mixed Results

Excluding the $1 million revenue contribution from the Molotov acquisition, FUBO delivered Q4 revenue of $230 million, increasing 119% year-over-year and also beating the analyst estimates of $213.1 million.

Meanwhile, Q4 Subscription revenue jumped 123% to $204.84 million and advertising revenue leaped 98% to $25.9 million.  

However, fuboTV’s adjusted loss of $0.57 per share failed to meet the analyst estimates of $0.67 per share. The number was higher compared to the Q4FY20 figure of $0.39 per share.

For the full year Fiscal 2021, fuboTV reported revenue of $638.35 million, reflecting a huge jump of 144% over the FY20 number.

Executive Comments

In a letter to shareholders, Co-founder and CEO of FUBO, David Gandler, said, “Engagement continues to be strong as we add differentiated content to our offering and focus on innovating our product to meet consumer preferences and drive a premium experience. Our expansion into real-money wagering is underway with the launch of Fubo Sportsbook across two states with additional states expected to follow this year.”

“As our 2021 results showcase, we continue to benefit from our position at the intersection of three industry megatrends: the secular decline of traditional pay-television; the shift of TV ad dollars to connected devices; and the rapid adoption of online sports wagering,” Gandler added.

FY22 Regional Guidance

Due to the seasonal nature of fuboTV’s sports streaming offering, the company has higher viewership in the second half compared to the first half. Based on the same pattern, fuboTV has guided for metrics based on regional break-up for the first time.

For North America, Q1 revenue is projected to be between $232 million and $237 million, and revenue is expected to be between $1.08 billion and $1.09 billion for FY22. North American subscribers are expected to grow to 1.028 million to 1.033 million in Q1, and for the full year, subscribers are expected to grow to 1.50 million to 1.51 million.

For Rest-of-World (ROW), FUBO has guided for Q1 revenue to be between $3 million and $6 million and FY22 revenue to be between $15 million and $20 million.   

Stock Prediction

The Wall Street community has awarded the FUBO stock with a Strong Buy consensus rating based on 5 Buys and 1 Hold. At the time of writing, the fuboTV stock prediction was $21.20, which implies a whopping 178.2% upside potential to current levels.

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