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• Total Revenue: $394 million, up 24% year over year.

• North American Ad Revenue: $27.2 million, increased by 21% year over year.

• Adjusted EBITDA Margin: Improved to -10%, a 796 basis point increase.

• Free Cash Flow: Improved for the fifth consecutive quarter.

• Subscriber Acquisition Costs to Average Revenue Per User Ratio: Below target range of 1 to 1.5 times.

• Churn Rate: Lowest for any March on record.

• Subscriber Growth: Paid subscribers at 1,511,000, up 18% year over year.

• Content Costs: Approximately 90% of total revenue.

• Net Loss: $56.3 million, a 32% reduction year over year.

• Adjusted EPS Loss: Improved to -$0.11 from -$0.27 in Q1 2023.

• Warning! GuruFocus has detected 3 Warning Sign with FUBO.

Release Date: May 03, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• FuboTV Inc (NYSE:FUBO) reported a strong start to 2024 with total revenue of $394 million, up 24% year over year, and paid subscribers at 1,511,000, up 18% year over year.

• North American ad revenue increased by 21% year over year to $27.2 million, demonstrating an accelerating business.

• Adjusted EBITDA margin reached minus 10%, a significant improvement of 796 basis points or an increase of approximately $18 million in absolute dollars compared to the first quarter of 2023.

• FuboTV Inc (NYSE:FUBO) achieved its lowest subscriber acquisition costs to average revenue per user ratio, demonstrating increased efficiency in customer acquisition.

• March 2024 represented the lowest churn rate for any March on record for the company, indicating improved customer retention.

Negative Points

• FuboTV Inc (NYSE:FUBO) spent approximately 90% of its total revenue on content, with exorbitant fees imposed by programmers well above the market average.

• The company is engaged in litigation against major media companies alleging anti-competitive practices, which poses risks and uncertainties.

• The pending launch of a joint venture by competitors is seen as an existential challenge, potentially impacting FuboTV Inc (NYSE:FUBO)'s market position.

• FuboTV Inc (NYSE:FUBO) lost the Discovery Networks due to unsuccessful contract negotiations, impacting content availability.

• Despite improvements, the company still reported a net loss of $56.3 million for the quarter, although this is a 32% year-over-year reduction.

Q & A Highlights

Q: Could you first start on churn lower and SAC customer acquisition costs lower? Could you talk about what's driving that? A: John Janedis, CFO of FuboTV, highlighted the effective marketing strategies and timing adjustments as key factors driving the improvements in churn and SAC. David Gandler, CEO, added that overlapping sports and entertainment programming and the unexpected positive impact of Women's College Basketball also contributed to these improvements.