[ad_1]
Shares of FuboTV Inc. soared again Friday after the sports-first TV-streaming company reported third-quarter revenue and record paid subscribers that rose well above expectations.
The stock
FUBO,
hiked up 14.2% in premarket trading, putting it on track to open at a three-month high on a closing basis. The rally follows a 14.6% climb on Thursday, which was fueled by a broad rally in shares of streaming services companies.
“Fubo’s third quarter marked continued improvements across our key performance metrics, including subscriber growth, gross margin, ARPU [average revenue per user] expansion and advertising revenue growth,” said Executive Chairman Edgar Bronfman.
Fubo reported that net losses narrowed to $79.95 million, or 29 cents a share, from $161.36 million, or 82 cents a share, in the same period a year ago. That beat the FactSet consensus for per-share losses of 32 cents.
Revenue grew 42.6% to $320.9 million, above the FactSet consensus of $286.2 million, as subscription revenue rose 43.4% to $289.6 million and advertising revenue increased 34.7% to $30.6 million.
Paid subscribers rose 20% to a record 1.477 million, which was well above the previously provided guidance of 1.327 million to 1.347 million.
ARPU in North America was up 17% to a record $83.51. And gross margin improved by 8.84 percentage points to 6%.
Free cash flow was negative $29.5 million, but marked an improvement from negative $69.7 million last year.
For 2023, the company raised its guidance ranges for revenue to $1.319 billion to $1.324 billion from $1.260 billion to $1.280 billion and for paid subscribers to 1.584 million to 1.599 million from 1.565 million to 1.585 million.
“As we progress toward our 2025 positive cash flow goal, we are confident that a return to content aggregation and bundling — which we long predicted — is now a reality,” said Chief Executive David Gandler.
The stock has dropped 14.6% over the past three months through Thursday, while the S&P 500
SPX,
has lost 4.1%.
[ad_2]
Source link
