FuboTV Stock Is Soaring. Earnings and Subscriber Growth Were Massive.

1 year ago 135

Text size

Streaming-video work FuboTV is seeing shares surge connected better-than-expected second-quarter results, and boosted guidance.


FuboTV banal is trading sharply higher connected Wednesday aft the streaming-video work posted better-than-expected second-quarter results, and boosted its full-year guidance.

For the quarter, FuboTV (ticker: FUBO) posted gross of $130.9 million, up 196% from a twelvemonth ago, and up of the company’s guidance scope of $120 cardinal to $122 million. In a missive to shareholders, the institution said it finished the 4th with 681,721 subscribers, good supra the company’s projection of 600,000 to 605,000, up 138% from a twelvemonth ago, with 91,291 nett caller subscribers successful the quarter. Average gross per idiosyncratic was $71.43, up 30% from a twelvemonth ago. On an adjusted basis, FuboTV mislaid 38 cents a stock successful the quarter, portion nether mostly accepted accounting practices, the institution mislaid 68 cents a share.

FuboTV banal is up 8% to $30.90 successful caller Wednesday trading, down from $33.68 earlier successful the session.

FuboTV provides a cable-replacement work similar Sling and Alphabet ‘s (GOOGL) YouTube TV, but with a peculiar absorption connected sports programming. The institution said customers streamed 245 cardinal hours of video successful the quarter, up 148% from the year-ago quarter. Advertising gross was $16.5 million, up 281%.

“Our grounds 2nd 4th reflects continued beardown execution successful enactment of our imaginativeness to specify a caller class of interactive sports and amusement television,” the institution said successful the letter. “Within the 4th we made meaningful advancement towards our semipermanent maturation and borderline targets, portion besides capitalizing connected the favorable trends we are seeing successful the category.”

For the 3rd quarter, FuboTV projects gross of $140 cardinal to $144 million, supra statement astatine $127 million. The institution sees subscribers accrued to betwixt 810,000 and 820,000.

For the afloat year, the institution present sees gross ranging from $560 cardinal to $570 million, up from a erstwhile forecast of $520 cardinal to $530 million. Fubo boosted its afloat twelvemonth subscriber guidance to a scope of 910,000 to 920,000, from a erstwhile projection of 830,000 to 850,000.

FuboTV besides said it remains connected people to motorboat its planned sportsbook cognition successful the 4th quarter.

Evercore ISI expert Shweta Khajuria responded to the results by repeating her Outperform standing and lifting her people terms to $40 from $33.90. “We proceed to presumption Fubo arsenic a cardinal beneficiary to 3 manufacture trends,” she writes successful a probe report. “Cord cutting, arsenic viewers displacement distant from linear TV to streaming; mix-shift of advertizing dollars from linear TV to [streaming]; and increasing request for online sports betting.”

Likewise, Oppenheimer expert Jed Kelly reiterated his Outperform rating, portion lifting his terms people to $42 from $32. Kelly cited stronger-than-expected subscriber growth, driven by a “strong sports calendar,” and improved churn. “Most OTT providers person focused connected low-cost amusement offerings, forcing sports fans to stay tethered to wage TV,” helium writes. “FuboTV is exploiting the accidental successful sports by providing a comparable viewership acquisition astatine a little outgo than its wage TV counterparts.”

Write to Eric J. Savitz astatine eric.savitz@barrons.com

Read Entire Article