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Shares of FuboTV (FUBO, Financials) fell 24% to $2.68 as of 9:45 a.m. GMT-5 on Friday after the company issued first-quarter revenue guidance below Wall Street expectations, overshadowing an improvement in its quarterly loss.
With an extra $7.5 million to $8.5 million from outside regions, the streaming platform's projection of first-quarter revenue in North America between $400 million and $410 million. The midpoint of $414 million fell short of experts' projected $436.9 million. With North American consumers predicted to reach between 1.43 million and 1.46 million and its foreign sector slated to reach between 330,000 and 340,000, FuboTV also forecasted a slowing down in subscriber growth.
FuboTV said revenue for the fourth quarter was $431.8 million, a 7.8% rise from a year before but less than the $445.2 million experts had projected. While the company's overseas customer count dropped 11% to 362,000, North American subscribers climbed 4% year over year to 1.676 million. In accordance with forecasts, average revenue per user in North America came in at $87.90; foreign ARPU was $8.50, somewhat below predictions of $8.90.
From $84.4 million the year earlier, the corporation reduced its net loss to $40.9 million. From a loss of $0.24 in the previous-year quarter, the stated loss per share dropped to $0.11. The firm announced a $0.02 per share adjusted loss, above projections of a $0.11 loss.
FuboTV's lower-than-expected revenue projection affected investor mood even with increased profitability, which helped to explain the notable drop in its stock price. As it tries to improve its financial situation, the corporation nevertheless struggles with subscriber increase, especially in foreign markets.
This article first appeared on GuruFocus.