• Total Revenue: $377 million in North America, up 21% year-over-year.

• Subscriber Growth: 1,613,000 paid subscribers in North America, up 9% year-over-year.

• Net Loss: $54.7 million, improved from $84.4 million in Q3 2023.

• Adjusted EBITDA Loss: $27.6 million, improved from $61.4 million in Q3 2023.

• Adjusted EPS Loss: $0.08, improved from $0.22 in Q3 2023.

• Cash and Equivalents: $152.3 million at the end of the quarter.

• Free Cash Flow Improvement: $31 million improvement, nearly achieving positive free cash flow.

• Advertising Revenue Decline: 11% year-over-year decline in North America.

• Q4 North America Revenue Guidance: $426 million to $446 million, 9% year-over-year growth at the midpoint.

• Full Year 2024 North America Revenue Guidance: $1.58 billion to $1.60 billion, 19% year-over-year growth at the midpoint.

• Warning! GuruFocus has detected 2 Warning Sign with FUBO.

Release Date: November 01, 2024

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

Positive Points

• FuboTV Inc (NYSE:FUBO) exceeded revenue guidance in North America, closing the quarter with $377 million in total revenue, up 21% year-over-year.

• Subscriber growth was strong, achieving 1,613,000 paid subscribers, up 9% year-over-year.

• The company delivered a nearly $100 million year-over-year improvement in adjusted EBITDA over the trailing 12 months.

• FuboTV Inc (NYSE:FUBO) posted meaningful year-over-year improvements in net loss, adjusted earnings per share loss, net cash used in operating activities, and free cash flow.

• The company is encouraged by a record upfront season and plans to add gamification to its interactive ad offerings.

Negative Points

• Advertising revenue in North America declined 11% year-over-year due to a tough comparison with Q3 2023 and adjustments to the content portfolio.

• The Rest of the World revenue growth was only 6%, with a projected 14% year-over-year decline in subscribers for Q4.

• The company faces ongoing litigation challenges, including an antitrust lawsuit against Disney, Fox, and Warner Bros. Discovery.

• FuboTV Inc (NYSE:FUBO) is still working towards its 2025 profitability target, indicating ongoing financial challenges.

• The company experienced a net loss of $54.7 million in Q3, although this was an improvement from the previous year.

Q & A Highlights

Q: Why is FuboTV's free tier only available to lower churn for prior and current subscribers, and not to everyone? A: David Gandler, CEO, explained that the decision was made to manage the free tier effectively and learn more about consumer behavior. By not placing it in front of the paywall, FuboTV aims to avoid impacting conversion rates, which could increase subscriber acquisition costs. Eventually, the free tier may be offered more broadly once they better understand its impact.