FUBO - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Brinlea Johnson

Thank you for joining us to discuss fuboTV's First Quarter 2021. With me today is David Gandler, CEO and Co-Founder of fubo; and Simone Nardi, CFO of fubo. Full details of our results and additional management commentary are available in our earnings release and letter to shareholders, which can be found on the Investor Relations section of our website at ir.fubo.tv.

Before we begin, let me quickly review the format of today's presentation. David is going to start with some brief remarks in the quarter and fubo's strategy, and Simone will cover the financials and guidance. turn Q&A. over to to the going into dig I'm the to call analysts Then

Annual begin, like the strategy actual on could we reflect Risk These with uncertainties Form Factors may to and can from Report be our our the Before and Securities Commission on I'd These materially launch results our forward-looking contain following that filed of Exchange expected statement our important found on to available based forward-looking March forward-looking us. beliefs, to discussion statements the with statements the in expectations the assumptions, are SEC. differ filings statements, XX-K certain and Fubo and cause business section assumptions of currently XXXX and subject and current other to plans, Sportsbook. and remind risks, periodic XX, everyone that factors information

reasonable, to after to these obligation we expectations no we call. this changes Although reflect are believe undertake statements that any revise occur

the GAAP to measures of certain measures GAAP in isolation over Reconciliation to QX we our considered financial David. a measures be should to the measures. is I'll the call also website that, These addition turn most directly earnings non-GAAP at available in our from During refer not non-GAAP for our non-GAAP or also results. shareholder on substitute in as these are and comparable to XXXX available which letter ir.fubo.tv. With call,

David Gandler

achievements update for results the our to excited discuss XXXX to you all Thank and this has you, delivered very Brinlea, an you our and joining quarter. team us I'm all today. thank give QX on

ever We by revenue, hours. commenced highest and impressive count once full-year very paid ever quarterly highest were results highest our guidance we and raising subscriber XXXX viewership achieved our ever quarter First again.

streamed XXX,XXX significant while to to EBITDA by XXX points accomplished $XXX XX.X year-over-year. of XXX% to $XX.X to our paid over content advertising over revenue the of to subscribers million, first XXXX, million. by profitability, XXX% XXX% making million, percentage this XXX% progress compared by hours adjusted quarter and by grew margin in by we improving revenue We to As all path

This quarter represents business. our point inflection an for

of adds, net in growth market of XXX,XXX which the for same as percentage the revenue period. noteworthy, the Media time, reported revenue fuboTV. first XX,XXX quarter quarter we historical of approximately As and Consumers and XX,XXX to first efficiently, entire XX% MVPD Net sequential strong first XX% XXXX, growth. Research we reported XXXX reducing quarter sequential approximately to QX and resulted to choosing overcame in first sales cutting compared are reported growth the XXX% of in trends and growth have achieved XX% marketing Nielsen year they a of we first subscriber additions a seasonal from of the to for go over XXXX. virtual, are virtual the subscriber Since cord period. in were Equally subscriber compared in subscriber increasingly year-over-year over the decline the only prior quarter approximately as

in play Our churn elevated insights community role in in content and and our due investments levels in drive intelligence QX while investor anticipated in optimization a subscriber to decision-making the effective basketball some to success, gaps coverage. critical our

enhancements average. up per continue total retention. we of month to million viewership hours along platform per point onboarding, our an product year-over-year. investments and active to hours stability and hours achieve personalization, amazing investments, improvement content to We see drove with lifts technology monthly year-over-year those X% These underlying user on XXX in and in with up subscriber And a XXX better continue as basis to a in churn result XXX

towards us and million, growth strong advertising delivered $X.XX revenue more year. our double target than of advertising are XXX% year-over-year $XX.X also to ARPU We revenue driving advertising our of this

a time of engagement holistic to our metrics, consumers spent, view, gain prefer with bundle content impressive a will MVPD particularly popularity. premium that assortment the content. continue virtual wide indicate category Our In our

Over to actively consumers of of services, the become and believe it some more will expensive content. carries we burdensome long-term, sports SVOD manage for numerous which slices

teams superior year-round will unified price. a and customer-centric We offering, for TV to innovative expect a live consumers content fair course, for sports content, look experience. personalized streaming that favorite channels, Consumers access to more premium fuboTV provides of value, a experience and our at easy our live and product sports come and

acquisition. make of further content our recently to ahead in to Sports driver base World We Network, informed continue differentiation, most Chicago new agreements approach, by monetization, engagement platform leading sports, decisions Recent Cup our Marquee acquired also as CONMEBOL, to as American in and regional of lower sports signed validated user advantage experience. Pittsburgh combine total entry owned accelerate package. to most also to featuring the the wagering vesting We've future fuboTV the also AT&T companies. and and will with and We of teams, World distribution South company the TV compensation platform, to programming one our disciplined the believe wagering, an that solidify in and with cost operated delivering and experience vision Sports gaming in data of of analytics we the partnering completed streaming with live into merger the the means and Network, sportsbook have technology and entry XXXX. and activity sports consideration a market. the streaming and will consumers our investing Vigtory, distribution gaming we gaming our With sportsbooks first be that under online measured We our distribution immersive interactive on of equity seamless first has million upcoming the acquisition launch data betting known look further networks of our want are position brand over believe companies with accelerate extend our of To quarter, in our be Vigtory To but not holistic $XX.X into periods. exclusive a sports for Argentina and compared soccer’s comprised a of consumer-driven a watch. and a to only product acquired Cup we Qualifiers Uniquely, CONMEBOL media distinct build some betting creating Brazil. very rights competitive the to entertainment we'll and sports

Rattner Our our key my is Butera Ali gaming new Choi new Sung regulatory Co-Founder, alongside by subsidiary Sam fubo industry technology. Scott hires Vigtory’s and Ghanavati, like Ho of and head led

experience, recent with multi-market significant by gaming has States. operators one entertainment Caesars is of our access the navigating This the team evidenced in gaming and regulatory Entertainment, gaming decades deals complex already environment made of United Our progress. largest the has

in quarter subject launch approvals. requisite the Our Fubo is Sportsbook to regulatory expected fourth obtaining to

pace We development. our product schedule, and on are making internal great with discussions in access progress market both

team of fast hiring executives. dozens already a employees, gaming growing at experienced rate including Our full-time industry is

to gaming Turning strategy. predictive our free-to-play

We QX market plan expertise few has for company and the out innovate are to have I in and are company. now megatrends The sports innings test we will in completing it XXXX. legacy be pay-TV. to And positioning highlights with quarter, platform the our growth we laid a our million do to they I integrated XXXX. in to sports raised look the our with forward the and the guidance weeks. excited one-year-ago, also opportunities We our many sports to pass it now minimum evolving forthcoming direction. truly still on to the answer progress three are betting to but our and a cord-cutting, and our in for Not tethered evening Simone have XX Simone? Twitter early quickly we into updating market. advertising and households be that only to it discuss excited viable We are In unlike converging about, this core other integration, to entertainment later experience any bring believe you to on next the phenomenal summary, been product product over I'll financial wagering questions. video stellar

Simone Nardi

operational continued to In financial make significant our Thank progress. you, good we exceeded QX, everyone. David, outlook afternoon, and and and

strong strategic positive in flow. of cash profitability data results the free long-term people, technology goal investment Our product, with reflect our achieving and and

the performance, million. is consistent walk plus I in pre-merger XXXX businesses financial excluding mention shareholder Nexway. we was would the comparisons our through pro This pre-merger $XXX FaceBank divested revenue QX fuboTV Total our and forma QX to As with you AG July I letter. FaceBank XXXX, for

driven Our to highest year-over-year, This year-over-year XX% increased quarter both ARPU. We driven grew XXX,XXX. of subscription in subscribers and subscribers both and XXX% Subscription growth XXX% strength sequentially yet by QX revenue with up and by in revenue. over was advertising growth XXX% by an XXXX. increase

XX% fiscal XXXX the propelled efficiently investment from revenue quarter sales XX% growth $XX.XX. XX% and to This sequential percentage in expenses of XXXX. growth was in to unlock these For as in by the of quarter Subscription packaging achieved first in marketing and ARPU the product, year-over-year expanded time, the upselling by tactics. by the in subscribers fourth and first of revenue both of growth quarter first we using and a we year

our our quarter notable our revenue with pleased solid also XXXX CPMs areas, brand compared returns is XXXX, quarter to in our off. to us investment engagement so will affected fourth fill levels, time. and of key a key increased are deliver XX% grew Advertising We year. over in revenue, par also setting advertising fueled We year-over-year our that improvement attractive believe strategic per-user for result ad that XXXX, QX market very to XXX% by CPM, is by revenue was see all while And ARPU investment in and engagement seasonality, are paying on increase it tech for business of for up first partners, our $X.XX. Advertising growing in rate. investments advertising in

increasing contribution going In In and delivered expansion, QX should we content of and X% in strength business our January. from X.X%, up which in increased of escalators ARPU place XXX growth base partially most points QX, to addition, ARPU engagement inventory driven subscription margin our and contractual positive adjusted our annual This allow in ad by keep in basis by of take subscriber agreements the expanding us offset advertising growth XXXX. distribution was forward.

quarter unchanged Our the and of content XXXX. offering quarter was the largely fourth XXXX first between

ESPN XXXX, the to larger this offerings addition However, our content compared was quarter and QX of Disney networks. given

year-over-year, margin efficiently additions scaling Our reflects contribution making future of expanding our ability while content of the business. while support approach investment our overall in to

the expenses, will of XX.X% of total our for cost, revenue. revenue of operating which percentage in accounted the points year-over-year. primarily XX evidence consists an total subscribers-related Notably, increasing able percentage our in for to This For year-over-year contribution that improvement increase we efficiency. of content remain these comfortable XX up quarter, reasons, in be is quarters year-over-year, lower XXX% adjusted margin point very were than the we expansion expenses XX% coming Operating quarters. deliver the

During to team, quarter, marketing, we in accelerated the and technology, first our infrastructure momentum. investment on wagering build

we drove increased in we resulted quarter-end path we margin percentage XXXX, XX.X% planned a as advertising expenses to absolute revenue. from increase year-over-year adjusted material dollars to this a profitability. engineering, on XX% improvement wagering as investment a at minus areas. over year-over-year, in significantly Headcount in EBITDA expense While product, our QX minus XX.X% and among of our reduced This focus other made as in

from included we QX in the in $XX.X quarters depreciation year-over-year adding wagering to confident $XXX closed during XXXX. and $X.XX related first is We This in was of loss quarter deliver common amortization, XXXX. following stock-based $XX senior approximately related conversion that in business of the AA discount the Net expand negative While EPS impact and to to impact shares to launch and completed the the the approximately our equal are February. the preferred common $X.XX million end of accounting shares conversion XX.X from outstanding expect stock in of we based QX ability the was debt This keep convertible XXX.X we This on was stock average in our that into business, of Series the headcount compensation million margin million QX at of shares the continue improvements. for with in included million. amortization expenses negative to EPS expenses issued negative $X.XX. amortization to weighted discount. reported to our debt coming February notes Note outstanding million.

capital optimize first structure. our the balance we and sheet strengthened further our quarter, During also

Networks negative a notes outstanding restricted million XX, issuance and As of million at included million mature And optimize QX in debt cash, AMC than to quarter quarter. convertible with in expenses $XX had proceeds of quarter, which also Operating true-up cash, with senior $X loans. number we million the more the In wagering, more and following operating was XXXX. further flow $XXX repaid included of net loan we fourth equivalent million March from $XXX the the $XX improvement in content advancing quarter our timing one-time cash we other cash to senior annual progress of associated million, will paid recently, payments in our fully of compared an of May, simplify QX that of repaid XXXX. our $XX.X end and payments the structure. some in impact

midpoint start XXXX to our XXX% and equates our $XXX XXXX. percentage a to our to compared a in we This our guidance to guidance. $XXX Given XX% revenue to confidence strong XX of growth previous are growth year-over-year and point in to increasing million at million trajectory, in increase full-year

year-over-year period to of end outlook higher XXXX, net reflect of for than implying In XXX,XXX XXX,XXX to subscriber XX% we addition at This of net across XXX,XXX. XX%. addition, least XX% XXX,XXX, guidance increasing addition growth our XXXX are the to our subscribers of

guidance second guidance for $XXX is year-over-year to is to above include million of subscriber The projected revenues not from Focusing million, it on does wagering. the XXX,XXX any quarter, online revenue for $XXX year-over-year our XXX% a XXX%, to growth and of to XXX% sports XXX,XXX XXX%. growth implying

dates are on our We very to on providing forward details markets our with plans in and wagering second August. look launch pleased earnings our quarter during more execution target and

in years As for and sport XXXX growing into market, a old subscribers monetization, our and wagering. a expanding in investing six include, priorities changing rapidly company product

in investment eye breakeven. cash an balance flow efficiency, with As to future always, and the profitability we

execute We to are us our joining long-term on very today. you for the call optimistic our goals. ability about Thank for

questions. take We will now your

Brinlea Johnson

Thank you, Simone.

our Q&A. some We analysts are to now dig to going into to over turn it

Brinlea Johnson

[Operator question comes to first Instructions] you. Oppenheimer. Kelly see Jed great Our from of Jed,

Jed Kelly

questions, Brinlea. Thanks, if Simone may. this. David. Thanks, doing Two Thanks, Hey. I for

improvement more – the lot products you making with network companies in all, more investment seems like sports then for it big it I media. sports regional And the your a in Is regional shouldn’t about the say talk churn? First of can the pretty what's driving with a more network betting or sports product. better are content David, of

a big hire. seen [indiscernible] we’ve a pretty couple Now made

this So launches? can you sports the see overall talk just on and convergence between about, product what update Any you media? betting

David Gandler

Sure.

question. quarters So improving We've first the delivered on eight a consecutive churn. churn. now that's Jade, think great of I

really a for our want been our probably product, Okay, features and have very together quality I noteworthy, retention. onboarding from we an our have focused retention. really the job improved this on in And subscribers, team negative passing And customers, you personalization not of in may churn impact so ability they've we to all to perspective. just we've drive targeting higher improvements us done marketing customize me phenomenal then also think to and thank that I this mentioned having a think to equally could have has allowed on because

product, people sort your a is to more market this question very share. changes to ecosystem. of solid gain clearly the enjoy With in have second and we that continue you respect around using what we shows the So fubo,

think these that major I difficult. I've is actually been areas first one think and say I the going wagering. streaming And think to converge that quite I to two what are actually do we that

virtual so has very what really we X% had Disneys, of I've that. north, news, the As And Hulu the well as The $X I've market to we share. the positioned. recent we're In the you we're world, feeling X% below continue And good share. saying, I Today, right? against trillion been validated MVPD competing side. companies, we're market et just which the seen Googles world, the about approaching of Amazons the on know, XXXX, of we're think already take cetera, again,

participate team. of pretty done what we're that found As sample platform on we've is acquisition at in I we and rollout we subscribers we're that's fubo, our placed Vigtory, bets We're beta, free-to-play, been to to have XX% our said, of has already on Number XX% willing base decent which on the base watched willing and XX% our subscriber in meeting and two, of to paid hours free-to-play happy one. least a our we've two the size, that developing our that surveys are very subscriber with sports base look games, schedule with place of that's at our subscriber our when is bet, fubo. the about our of XX%

able what's usage revenue drive will think which which or front. far our So and acquisition we're we important our net lucky really improve from the building think a think going numbers, define also be SAC, bonuses. of I look subscriber to are that's very you've to that very to on acquisition And advertising, And able drive to and to don't we're ability lack new going seen we together ahead what going know on overall, down down side. going has well is actually I service And successful. platform, we're be also is been think, positioned. for subsequently We gaming that costs drive to our category really a to also It's engagement, note on that the put those improve just like. who really as will we're actually subscriber to to gaming pretty so category costs

the to high. I'm quite know So actually see to way that thinking and are important same happy others are you entry as that barriers is most also the

be bigger So demonstrate to recent results we And about with companies. to our really very ability able our good feel compete our positioning.

building So portion our we're out looking of business. that forward really to

Jed Kelly

you. Thank

Brinlea Johnson

you, Jed. Thank

Shweta Shweta. from from Go comes ahead, question next Evercore. Our Khajuria

Shweta Khajuria

Thank you. Okay.

two me try please. Let

overall talk drove opportunity? it advantage first your really was the Thanks. can you overall well probably in This versus expectations. the as as betters letter around about Jed’s is Can and talk remind then what advantage please betting? the please And talk strength you competition second the strong the the in time of your you Could on What this opportunity own and just about your lowering platform. segment differentiated very strength in costs on sports And second, overall revenue? betting, us your – in acquisition in is following in integrated up engaging above and size embedding about subscribers ad you question. your quarter? First, revenue the is just

David Gandler

Sure.

has our the of the So on I the quarter look, out execute. to ability think part really and of fubo question, is first your quarter end what day, in at demonstrated

has job. that phenomenal from so certainly our into a down more a able are really data capabilities going to product the and really customization, has ability been it. leverage revenue down team job, more marketing And marketing done higher subscribers, We're to introducing a quality more team then our the product. driving always job as Our first quarter. drive a to team as has of phenomenal now the door. And phenomenal into percentage We’ve at They does that’s the in XX%. played personalization XX% really done then subscribers that's in $X.XX, advertising our

can much Board. a us for So is weaker do a you across up first year in And see than quarter this as imagine, think I you the sets you what typically quarter. really great fourth

we're about So that. excited very

the it's we to People sports-first clear As fubo to second for replacement the That's your pay-TV undeniable. service. come are sports. for question, me,

that send and you different out. articles media see tweets that the in and You people outlets that see all time,

for numbers, NFL. in in so fubo typically months of of and to sports the the the October, you downloads the season seasonal the terms of like fall in which You see are September see more tied and that start number

certainly So an we have advantage.

added the going get. can clear broadcasters, all deals there NFL with we us a that's me, and – best a provide space advantage opinion, business of think And virtual experience now MVPD recently the success offer people note that we actually million is that which attachments going That's this important far. games of X.X which immersive to want I forward really have if to of year. true experience that allow in QX. a because know attach the the been Shweta, to done the NFL user our and to from to is but new have rate it's quarter don't guarantee this that they really in so And holistic in wagering. aspect, you have notice X.X first my the sold is I we up Obviously X.X are the We a that

actually that selling at we're pretty incremental you tells that good services. So

engaging other XXX The with are consumers thing our hours is platform.

and will bespoke So to to have of we way, have by to we're those don't upsell gaming bonus because revenue a lot betting discrete ample to opportunities, which people. our opportunities continue going net drive them, the higher provide

to anticipate the want a had don't as and end clear, base, base our in So that XXX,XXX it year. static we continue subscribers grow I way. make I the to look at our at of again, very We

now pacing We towards XXX,XXX are subscribers.

market access have three We licenses.

have we really regulators And the I that get are authentication of lot about we never jurisdictions. other – ways can't other data advanced really our layer, really with right ability working in leveraged into the to now before. are in time but to We a been discussions leverage deals, spending have with also talk

super are And excited space. a category. opportunity in I There players Jed, not new as creating we our I'm will be about to many So said here. that

Shweta Khajuria

you. Thank Super.

David Gandler

Thank you.

Brinlea Johnson

Thank Shweta. you,

to comes from Martin Laura, Needham. at see great Our Laura next you. question

Laura Martin

so Hey. to what stock, keep you say the do. Great you in guys you're because doing XX% numbers you going just

David Gandler

Laura. you, Thank

Simone Nardi

Laura. you, Thank

Laura Martin

Okay.

advertising. forward, that think engagement is really direct of So let's maybe, wondering is, It versus rate drill programmatic your Can much were you also? sale what Simone drill be running? is And in you prepared and what I'm those about was where rate exceptional. Could today? in on down fill how XX%. about guess, when all CPM and those was on used are I your give us interested CPMs, said growth This $XX to And you some fill down advertising remarks we higher. I'm on his metrics

David Gandler

Yes.

advertisers just because range, very our end. recently launch the we our studio, of why set start quite to with is is we provide new I to good So we're XX% for know, think don't which the customers. announced which specific still to I you going immersive actually Programmatic, XX% more experience create a as roughly opportunities the in think of

that's drive So going obviously opportunities drive to value going to to we that and there's be think CPM.

of generally right. speaking CPM, terms programmatically, In you’re

around trending were we think I $XX. roughly

of because in grown reason why about The We’re the still was is I south is in a we're actually XX.X, think have X%, actually thing. $XX. which CPMs the range QX. positive it

why have is know, you significant ranges get because XX potential to reported that's that to recently. other Now, important we very companies as upside have XX to the

So able quarter, into bullish very you I'm on CPMs that as increase. going And as the get $X.XX continue we'll that this forward. know, we've delivered you that QX, do be to closer to

CPMs So I to the a for think we've set first in kind drive nice base quarter really of very ourselves forward.

to to but relates got certainly XX% last up, year. in we as rate, well. room is lot there out were of it As range a we've Fill XX% the selling fill

similar So again, to very our CPM numbers.

kind before of we to the You're Again, fill least but seem drive in strong, hours, obviously a So will very be numbers viewership see April increase, healthy Those stronger XXXX. to think rate numbers than give and quick you nugget continue just of focused We're you to QX, moves. two is somewhere rate despite areas. on COVID much viewership seeing then I'll hours growth up right? very are last very for but not our like XX%. around X% organically. And a

more main we about numbers watching advertising. see April, user, least channels. over the But continue have At people not strong more see and on we're are yet. spend numbers we to We programs. people monthly watching April active in more Per very We looked watching time see at people television actually coming excited our very fubo.

American the also qualifiers we as QX, know, into CONMEBOL. we World you Going announced of Cup the acquisition South – have

give to capabilities to going with similar, Quibi. us it's and our of relationship opportunity an want We did with new Roku out LiveRamp. So some like, test our

time, be very we're to excited. going very it's So interesting but

Laura Martin

but for an And they streaming. for my in which good more that, a rights, some that I bit your question because and that's are Okay. NFL sign the creates is, position I XX-year gave think note deals sports competition hear a at streaming second then there's investors is lot anti-consensus, taken a from least streaming, the little of argument you've fubo

and view of XX-year your in NFL these on love I’d lots streaming that with rights it's that included deals positive So those signed terms? that you why the think –

David Gandler

wanted you, Yes. a Well, That's cover Laura. great in letter. we shareholder That's it to question. thank why the

known you've long me a think know you us for now. very time – I

I we always been think We've it's natural that the contrarians. other clear side. are on

so record, proven And that far the deals These is always XX that important. based our of next track very years, correct. for been are business a guarantees you longevity which right, on criticism you the is It sports, has call one how do at world, future. not least far I'm to even the the number the States, by in know media media. there's a The is NFL in going property it United get right.

our of piece important business. very a that's So

provided numbers, and QX data Far this their is In you'll it's that. at heavy If the wagering any for nothing really the does majority already new. see that lifting. that's earnings and company you away, QX our case, look of

on available seen few years. last the You've the CBS been Super Fox Bowl for has and

time. again, to leverage customers people want have that which to a believe for unified events. or don't this said in They sporting believer privately seen which personalized times. or I'm run have you looking But I've to at platform on to and games a around aggregation. view and are experience. platforms time we've which many the energy huge So I different publicly desire

deals very those long. I'm are that key think again, I is decade here bullish it. on the But So

obviously about else has anybody know anybody unlikely. that's Apple highly now in, So coming or concerns any if we

Laura Martin

much. very you Thank

David Gandler

Thank you.

Brinlea Johnson

Thank you, Laura.

Our next question comes from Jim Goss at Barrington. ahead. Jim, please go

James Goss

Thanks.

it? of in to network and seems about the I think similar of have there relationship, out deal. I there were that expecting terms of their were this off networks Marquee like the to it. which additions costs subscriber Cubs one I more like And I'm with Could in on own. of and think a of others the you're different. are know in what's Marquee bit sports I'll you created your you talk something the have of regarding with terms start Chicago. little a that A get but the couple a others terms and what lot

David Gandler

thank Sure. first you Jim, all, Well, of much. very

Just We've city. we for the headquarters our you in gaming love team our Chicago. know, up opened windy

excited So very about we're that speaking. geography, generally

As you license also a know we Indiana. access in market have

has number with importance a our increase is know, and of renewed added we But that Houston, continue company. So NESN. Southwest launched to our you deal Pittsburgh on strategic the region year, Last we AT&T regional platform. our we sports for networks that in as we

continue to look very And in don't phenomenal certainly sort our same fans or coverage our But So in a we're for huge that going this Cubs And again, it's a of our always. And rooting important I the team tap into. with opportunities to sports we're certainly ARPU we make favorite there's numbers to from we're you we that Chicago, sports to growth that state-by-state sports want and think regionally the the for you demographic comfortable workout. to able geographical and expand nationally. for we're access very basis. think both get all to strategy. have see we can time, at teams. their a But But Chicago to in, provide on as Cubs, our

James Goss

of payback monetization it wondering are at these second a was options to little be have you? you might options might what they Is monetization your to gaming advertising I get also I the if out timeframe And timeframe what a sort in then. granular which sort the – question looking or of or frame more more might in And additional Okay. to might terms get surface of you for ambitions. ways? important and too primarily pace

David Gandler

is creating think long-term business good really about right. think we value, about Very Yes. the I Jim. our question, way shareholder Look,

share easy an and utility know business customers. already platform, data to is so that greater hours the be fact This think sometimes new We this billion. don't for static to difficult going platform to wagering. MVPD evolving advertising like, the on expanding company. value them, our fubo XXX of not I companies. models. for it's love it's The to innovate a And on of just around around that out very an spend they love in or think $XX for me to be more engaged. taking revenue the this we're they're building really for And stream But just more able market consumers make sure want providing people that the extremely take understand of X% which set said we to we give virtual unreasonable importantly, And But survey is company. X% just one space. InVideo that in the colleagues. us way develop fubo we I've I large But can provided sports, customers market wagering your to as business a as comfort before, could we're

would fourth launch acquired, be in And to to the fourth we've be Sportsbook that is So we I And a more to Sportsbook, quarter. that'll fully Sportsbook Vigtory. you think go fully functioning which in quarter, a functioning Simone, value going create for think shareholders. perspective, we're value create a our we're more for agree, planning going customers, we're our to from ready that monetization will

Simone Nardi

for we launch, as the to we'll the well. details able timeline closer be wagering more provide And monetization as on got to the

James Goss

Thanks.

David Gandler

Jim. you, Thank

Brinlea Johnson

to tie It's someone a Jim. good again. wearing you, Thank see

next comes David Our question from Berenberg. of Beckel

David Beckel

what Are in I'm or on are how I brand some expect it is is I you maybe around about model? or point of of what exclusive content year content pre-launch if hope Question And wondering think feel continue a can bit terms a return at looking second advertising at Hey specific invest in building extent similarly, you return investment sort well. for about more like an then you're Thanks. spend. stage SVOD in And the you're question willing, for not the you you a on this to general. your give about I'm content. how wearing breakeven to much spending you on two? just next us cash if can product? guys, to on wagering little on elaborate bad product. color to just that you you're over And investment you wondering am if think expecting tie. flow

Simone Nardi

Yes. a question. great Sure. David. Thank you, That's

getting our to analysis the of in and of very on people in platform of either or is terms content look people of keeping terms advertising in join at of engagement We approach, our know, content for their terms content we're the So engaged and data-driven fubo. and subscribers platform a critical return on our you in many terms as in become one. clearly our areas

in revenue I before, even already the our of these that than less So mentioned disclose ensuring concretely see the numbers, cannot in subscriber-related P&L just a expenses get we we that But looking of a position that return started kind terms afford in leverage were total way a profitability in many dynamics, content. and targets and in they clearly to now. mainly based of long-term QX, economics expenses that to at our XX% able us can't subscriber-related on we're negotiation in of give just and we a times

So we a for the dynamic can trying possible put best best subscribers in way the we together possible offering package really assess monetize and way. continue in content our to that this to

David Gandler

we that's just the Yes. a clear wagering front. to sheet. $XXX everybody cash. over to And got very great make million that We've strong David, want on I just have question. of balance a it Look,

we've I execute no clearly other like demonstrated think pound-for-pound. company. We

so business. companies value do start that other for to funding to of the require actually drive And same the type really we not need

look the in spend I million us So year, for to probably opinion, launch. and my rest just under of would think $XX that get this we'll to

lower there. seen our fourth to active our offering other as access able think of we've take of think the you've and out very we same and market deliver just any provided that be team's to you player I acquisition But on quarter, in be market at cost by out licenses, of and end year, there we working data. put than again, we’re sometime a a And in three we'll be got type service I'm haven't book we'll that So able this plus the more start costs subscriber confident as well. down costs to costs. our in services, I customers as ability kind our well as acquisition targeting actually results multi really them

on So data people that I way let's our us This markets money business. provide we've the able able to we're it's able not right market our looking it. in develop and to get forget now be be going for to to are that think and with that bespoke continued We again. us very there be discrete bullish embedding. to we think And with service, line of much is video we'll leverage very also so provide well, out type to to of cost don't own to a lot

here lot of innovate we that end certainly the advantage think to well and and opportunity for take there's are going us to XXXX, I into a So and at of that full of beyond. XXXX

David Beckel

Thanks. Great.

Brinlea Johnson

David. you, Thank

from Go comes Salmon Our ahead, question BMO. next of Dan. Dan

Daniel Salmon

big I and a RSN your this highlighted growth start Good real everyone. service? your has happening? expectations got three and bit your that ARPU advertising picture for to we ESPN’s been year? to of networks like returning finally, once strength your Pittsburgh here important a Second, how could David, I've subscriber questions. in what Chicago by David, you the And addition the targeted guess are for of rate lap then those Hi. you you. one afternoon, that Is so outperformance differentiation that to markets far

sports the of both and of a acquire You’ve sense saw lot South make commentary own American of hear rights. spot sense that in right in in there It you? between seems content about investment thoughts That here the your there's a content type around fubo. including Fox Does Outkick. efforts more area? Love We and streaming sits that for category for to areas that. seems a original talk would like convergence that sports on just like your make Is betting. sweet that

David Gandler

you – the Can Can sorry, question? repeat Dan. Okay. you first

Simone Nardi

sorry, The first Dan. question,

David Gandler

the of mesmerized number I by was question you asked…

Daniel Salmon

RSNs… the were important How

David Gandler

strategy. RSN Yes.

want service. be content cable provide to breadth replacement greatest with, We we're going look, customers can a sports-first best TV with the right, and to provide we our smart. the content. of We're that So them

offline we that and some there could Turner think, and I be also headwinds spoke March felt Madness. you without

of the we've with the know look, relates of size the how pretty I to well, know the we geographical I target overlay subscribers. in much it's demonstrated Is map? really to audience sort DMA. think it would on of our say, that that line subscribers we and

San get to more going Diego. Chicago you're in then you're So to customers get going in

we're looking that where for and this we're their markets just is Again, way. And care we've natural really So about felt local. we sports always said contrarians people sports.

carry Madison Square ones NESN, Garden, only that the the We’re still Houston Astros.

think going do to continue of note. one and companies to really allows thing our at an efficient of I to betting, great important customers we of at come that just to I to to user to providing understanding affordable that. to right. if it service what side, people Because actually a we're the experience. our to about best what that and get to So product look And with similar then we And our a lot reports sports price. believe really cost a to really very And we about that that market that our well, We're people do the mean, programming. companies us really doing comfort effectively clearly of our of you as which affordable very to think have on breadth sports fluctuation wagering is think in you're earnings a sort growth us it's the of as we door. the our wagering people get solid very wagering their at great sports. and It's are doing, it, really seeing these bring on gives ability

focused on looking and fans we'll beyond. QX breadth have, forward So that to of increase continuing target then content have, the be sports and we as to we also and

the question. for second As

Simone Nardi

Yes.

that something of of David point mentioned. package that the very the results full content just value pleased negotiation or for that drives for attraction attention have mean, seeing these or that in the believe terms year in commented we additional I and are engagement, quarter. we each additional is our on we witnesses healthy on clearly And brings in remainder first that been the subscribers, numbers one beyond. continue would of ultimately, add that clearly that clearly we're the all drive the to Just

were The asking Dan. second question you

Daniel Salmon

expectations growth ESPN… Is anniversary ARPU you advertising once

David Gandler

Yes.

sort in been to in long mean, know I you've it of start the this for it's and return you Dan, is Amazon I look, think, QX a that business like Let right? you lot clear. QX, you my say time with same It's product buy than stronger And – QX logic on retail me I QX. example, as here. in a very in just and

have massive You a QX.

in, Coca-Cola's, You CPGs that's coming the going coming have got you've of you've to really big are in, rate. everybody the all got drive auto,

demonstrated expect is where have we heavily think team, great into of that the to we've that us you'd I strategy things lots do. done our doing a ad the investing what we're We're into is capabilities drive and continue to advertising revenue. us for that floor key already nice a have to But the we set, in I terms number. of think we've that that going tech we're

to QX I think So against positioned in QX. that's than as able year. fubo, kind very we feel where you are. revenue more well of some feel we of And expectations. comfortable continuing people really hours our again, that the we our comfortable solid again, number consume But are And very and mentioned to to this we're to double with be meet advertising comp,

Simone Nardi

Absolutely.

in So of year will the of terms monetization. continue advertising year-over-year remainder for the the increase

Daniel Salmon

Sure.

Operator

Thank you, Dan.

ROTH Go Dillon. of Capital. ahead, Heslin Dillon from comes question final Our

Dillon Heslin

taking Thanks guys. my for question. Hi,

and walk back looks and year of sports cadence – half what you talk from plan of quarterly last April plans? to growth the numbers trend you us like adding like what secondly, some you the and the whether adoption then through the the came the on trends side, both on compared was And have monthly could a saw First, starter, those the – and I it of sort like of sub between the until of they're then elite, were you differences could lot that about when engagement influence QX into the and online? those attachments how second guess,

David Gandler

Sure.

well is that very we do are What Those know Dillon. of packages specifically. fubo you, thank is good leverage that, on questions. say what don't will to we at We comment data. So, how our I part

the of that this all be we're those of in so how Yes, and prefer constantly of what's different new by we testing see capabilities out attachments. all me, be the could I’ve new asked obviously packages. to be time. the We've bulk testing And packages got always find different is I way, going We're you'll of going to you'll consumers, stick. see our what course, wagering. We offers – is positioning see packages. to And lots somebody of to what understand – preparation had want monthly should consumers

So take that's your part? you on the Do the to question. want first part second of

Simone Nardi

Dillon, part you remind again [indiscernible] do Yes. the second question? the of

Dillon Heslin

Yes. Sure.

QX in growth the when online? of came sports platform XXXX of their sub like half engagement and into then on wondering compared Just cadence back April to how the and that second

Simone Nardi

Yes. Sure.

growth So platform. clearly, in the by driven you've and been that’s as retention quarter, size seen, engagement had well we to additional significant the as additional as XX,XXX

a remainder the year in of the half of For higher done first more half expect the from and settling in we of year of half started stabilize XXXX. the with that kind year, we the expansively years. grow are now that first second stronger will in similarly want the But that is the we the we base prior to continue in to one

David Gandler

Yes.

is the to add that. Look, to Just cadence good.

As said was I solid a April month.

in say significant – a saw increase May we we through the went that May. viewership where recall, time would viewership we impact in some April June. and then April, of hours March a and really stick saw in you pandemic hockey the saw If obviously XX, hit around May June. COVID And last And I decline

early of to of first days our our improve We the our that April to looked content. product, start ability few quality really but the May really And we and are of again, with solid. different speaks – discoverability that at, very happy of

said, are user I of are people the per watching number monthly also up channels programs well are active As as up. as

million So we it again, of in quality households go. we're really subscriber to and to that me XX the bringing to speaks have left

deals. at decade coupled a I NFL So comfortable feeling about am this long-term really with the market. And large X%, very today opportunity the long given where are is we

very put And also start to I our take ability I to we're is to think a only the I advantage when I'm This of together, good those and really think value is actually a driving years quite company, actually given ability on very of profitability both to position it's execute, just wagering side. path interesting strong. six the of going again, in be tailwinds. our comfortable old. And those in

think companies Spotify, you XX Roku to and if Netflix about and you're are talking that right. old, about So years XX

QX. good and So the about tailwinds. to We we feel execution we're the about forward feel looking good

Brinlea Johnson

forward our thanks Many our fubo this Thank progress. look so to remarks with fans to you, their there, out our keeping you today. for good our much, updated we analysts you questions. the And shareholders, All on concludes Dillon.

David Gandler

Thank you.

Simone Nardi

you. Thank

Brinlea Johnson	Managing Director of The Blueshirt Group, LLC
David Gandler	Co-Founder and Chief Executive Officer
Simone Nardi	Chief Financial Officer
Jed Kelly	Oppenheimer & Co. Inc.
Shweta Khajuria	Evercore ISI
Laura Martin	Needham & Company, LLC
James Goss	Barrington Research Associates, Inc.
David Beckel	Joh. Berenberg, Gossler & Co. KG
Daniel Salmon	BMO Capital Markets
Dillon Heslin	ROTH Capital Partners, LLC

fuboTV (FUBO) 12 May 212021 Q1 Earnings call transcript