FUBO - Earnings call transcript Q2 2022

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Operator

Good day, and welcome to the fuboTV's Second Quarter 2022 Earnings Call. Today's call is being recorded. All lines have been placed on mute to prevent any background noise. And after the speakers' remarks, there will be a question-and-answer session. I would now like to turn the conference over to Alison Sternberg, Senior Vice President of Investor Relations. ahead. go Please

Alison Sternberg

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

quarterly quickly me is and let John to like begin, for the following financial profitability, the with securities format brief filed turn the and David XXXX federal quarterly statements our including we beliefs, report and that within Before quarterly our statements XX, subscription may the Form everyone on information filings anticipated EBITDA growth the guidance. remind and available presentation. today's with cash forward-looking the Molotov our and materially based assumptions. uncertainties continued review expected results found going targets, from actual Sportsbook. platforms analysts condition, These levels, to period be of Q&A. risks, fubo statements the that opportunity, strategy shift the financial annual regarding going some I expectations other synergies financials forward-looking with of differ These our discussion the I'm will the expectations cover strategy certain limited and start business of plans call acquisition, periodic would to the factors market the meaning can the technology currently Then, and June the fubo including quarter over ended regarding remarks regarding flow Commission forward-looking on and SEC. and subject statements and to could but and to our be guidance in adjusted Securities plans, not the to and laws, and contain current of for assumptions XX-Q us. and Exchange savings, related to in to section Factors strategic reflect consumer behavior Important are statements Risk on cause performance, to

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

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

David Gandler

economic our Thank call on The since you, Alison, quarter good everyone. us today. joining has We earnings changed the call. first fundamentally you and appreciate afternoon, environment

clear. While ongoing as that is accelerate affordable will these we an also But the capital there is uncertainty, for sports the cord-cutting challenges profitable increasing growth entertainment appetite consumers we alternative. and believe is of market's and realized streaming cost do seek

economics measured will high revenue. advertising our content-related entire must of our we will review to changing on know Therefore, we environment. work unit refine parallel, model resilient economic reflect business prove fubo's to believe focused continue to both In profitable, improving internal we to this also we to and continue growth and continue cost While growing by we materially be reducing areas additional remain and our drive structure costs savings. identify to margin adjust and to

experience best consumers. viewing and an for sportsbook, to wagering in believe continue We video that platform, offering will result both a integrated live and gaming the

with runway early the the cost business longer business capital when climate horizons. and provided profitability enter to we the clients time However, business of at efficient develop time decided XXXX in wagering a new to

made Now, inflation to changed and recognized that we XX-year with no the holds place have We that highs fubo strategic under review. wagering true. therefore, market has the decision recession our sports the online business and hitting longer Gaming,

longer business. will own and path continuing forward no our as the pursue conversations update forward opportunity exploring this look to scale We are best you to on We to progress. the

important content during a revenue to quarter our for subscribers North to strong in quarter to to report seasoning turn now to the reducing million. North subscribers growth a third let's million, are that pressure including I It Now a quarter primarily number $XXX.X of a count second year-over-year with we closed American year-over-year subscribers, environment XX% growth. results. our period cash Against pleased driven under end the by of year-over-year $XXX.X by focus the America XX% sports underperformance in we sports challenging increase of in and XXX,XXX. this our revenue the came This continued paid to to growth we $XX.X with America, to note was XX% the We that quarter in on Ad that North subscriber busiest burn, million. entering despite increase increased believe growth America our the topline calendar. of on record due and is second finish Global in and XX% subscriber certain grew the am year. part period revenue will North low

expected We have ARPU as report tech the to lower quarter. place are we disappointed ad upgrades for to second ad in

and introduced more continue designed improve and serving to ad inventory effectively to technology new systems scalability. updated deploy our monetize We

we result, believe improvement costs of in our our in quarter. both came contribution adjusted positive XXXX. This goal trend of in expect a half And we with Xx cash EBITDA in compared to back the return cash at confidence ratio within to revenue our and to flow ability achieve average we EBITDA to provides flow as adjusted saw us operating year. first As to growth anticipate capabilities be margin, of in user year-end. This per advertising a target we acquisition to the Notably, the X.Xx. should a continue by and we deliver also able adjusted addressable is subscriber scale added and

and World XXX,XXX Rest business, total which ended streaming paid of of our quarter Turning ahead Spain. with revenue. the in total million includes France $X.X to subscribers approximately and expectations We

balance As rates it higher products This to bundles. with gains, and margin and to meaningful aggregation of million higher In the end, highly best quarter we in growth operational at the relates expanding includes also us flexibility fund programs content the and come. increase while remaining the price in to disciplined implemented position, vigilance of initiatives our of will and in support $XXX sports our expansion. to continue started measured I'm which new ARPU the yield lower capital to continue allowing to this around contribution subscribers liquidity quarters with financial We management focused take pleased cash subscribers economics, growth among subscription ARPU of we migrate entertainment and ARPU believe has approximately optionality costs. unit to structure.

strategy, offering As part or help our channels XX we that Television FAST to ARPU to Free Ad-Supported of drive channels of expansion. ad grew long-term

by of the believe end FAST We interactive. of will channel expect future television to increase offering to the be the year. We XXX our networks

launched personalized our breadth goal viewers greatest custom is fubo participants passive sports multiple through Through provide for offering games interactive and and to Sportsbook, viewing viewership. experiences, consumers into differentiated are premium fubo experience pick'em our the designed with through products. is proprietary content our optimized of to Our engaged turn our active recently a including that

time the experience interactive We the fubo out and is will our rolling to completed capabilities in in will retention football continue submission season. Jersey this making Gaming I'm Division to users Sportsbook. approved are with engagement and our and drive we time as expect of We the progress of XXXX believe New platform. depth to over the recently breadth develop Enforcement and the expand be pleased ARPU for also and

of is betting Jersey in on roadmap. largest mark and presence the sports will milestone there terms market an New important wagering handle our mobile our U.S. second in

We to fubo an additional availability also in states. the to Sportsbooks four market expect weeks, ensuing launch doubling

by higher of allow leveraging technology will the technical Molotov incremental fubo minimal global leading service talent continues us product believe us costs. live between and leverage streaming many to Molotov, We synergies that will global Our late robust enable France's the one create last fuboTV development with integration quality a to international platform platform year progress. TV to to acquired enable fubo and a experience. pool This aid to also is launch us product markets user additional designed and faster in that

and putting a to value cut demonstrate As the and the that content proposition that leverage we before mix, through flow as consumers capture begun frustrated we believe interactive market, resonate market we as in free continues streaming In single confident ability value streaming mind We in positive of consumers our inherent programming. increasingly are more the fubo's they will ever share. target than in services aggregated customized remain our closing, to do through onslaught to XXXX. with solution cash experience them this and become of our diversified allows presented to quarter, achieve with added model a the and have in we offering many selective

first build We are leading TV streaming you, extremely content key the mission our interactivity. look long-term today. of continued breadth initiatives will us support. We targets global forward financial our John the aggregated on streaming with Thank John? August the live turn CFO. call everyone optimistic strategic about appreciate We to Investor model Day the joining platform premium Janedis, for world's call on greatest plan, your the over and interest and and the our future I XX. now outlining at and to of to

John Janedis

in afternoon, Notably, ahead America expectations several revenue subscribers. expectations year-over-year good KPIs, double-digit and revenue. of in streaming business our came everyone. of our and We revenue rest with delivered North subscribers, and on world growth the David, you, Thank of on total in across consistent ad

of This increase XX% primarily million, subscribers. its slightly in of and be period As America expect growth year-over-year. $XXX by North sports we shortfall paid the revenue live subscription below was as Starting driven of includes seasonal as a in This half was of the due delivered later North approximately second well guidance sports at month. the will a to an expansion the subscription quarter million. America XX% $XXX sequential revenue revenue English calendar subscriber million, ARPU college League off second football top, Premier this enters growth streaming is business, with as busiest to X%. see kicking XXXX seasons was again $XXX of

XXX,XXX segment million on revenue year-over-year the decreased accounted $X.XX. Our to of for of of revenue. $XX increased a base quarter and X.X% in XX% total Rest XX% of the World approximately streaming million $X.X subscribers. to Advertising revenue generated Ad ARPU year-over-year

increased over levels. basis, X.X% sequential a on first ad Although ARPU XXXX of quarter

believe the the improve contribution metric which as to over us progresses, We year expand to expect this we margin will time. position

at share $XX.X loss impairment, first impact of of This discount compared prior in also and came of second non-cash of adjusted in other year. re-measurement of loss per XXXX. EPS Our in loss second warrant non-cash million to of debt XXXX XXXX the a of second quarter quarter loss compensation, in We and $X.XX. the EPS $X.XX the a was and of intangibles, EBITDA sequential adjusted liabilities represents loss $XXX the a excludes $XX the of Adjusted goodwill quarter had million a stock-based a from reduction the quarter earnings million amortization items.

that and rest Now was negative will compared $X.X million our This to business. of of quarter in cash the the cash over is inclusive quarter the first associated turning million Operating $XX.X year. further to million with moderate expectation reduction flow. the flow a losses cash the represents wagering operating flow $XX.X

our to disciplined highly short-term initiatives. to afford remain and fuboTV We financial structure in measured balance flexibility sheet. capital optionality growth and We the the disciplined the ended to quarter and Turning million cash $XXX of and investments. the management fund with

long-term Moving remain goals, delivering believe world-class well margin differentiated a our to and outlook. positioned to execute experience our to all We while on and on consumer. we the revenue

specifically revenue not our reminder, projected from a by guidance sports Note that include does are metrics online guidance America and world. region, North As wagering. any this rest of

will we streaming. America First, North discuss

revenue to third $XXX $XXX year-over-year and midpoint generate our growth third the On and subscribers year. pace of representing million, expected at of For while within at also million, reflects at XXXX, the the XX% impact representing our The guidance on quarter of X.XX million our basis, representing into account million representing of XX% growth outlook to X.XX year-over-year XX% to million, X.XXX based at we shortfall the takes year-over-year million the million, the the revision of to a midpoint. X.XXX generate previous additional with that the XX% in changing conservatism the $XXX and throughout subscribers growth revenue growth the midpoint. subscriber second the subscriber macro expect million $XXX the of full-year remainder year-over-year growth to to guidance of environment, midpoint expect at the full-year quarter we quarter

streaming, third to And of to Rest on quarter million $XX we revenue subscribers $X to expect of of we of revenue of with subscribers For $X million XXX,XXX to to with World to basis, expect XXX,XXX. XXX,XXX. generate a million generate $XX full-year million XXX,XXX

monitor We will continue the to macro carefully global environment.

forward, and our will on our deliver improve long-term prospects growth a and subscriber confident and we goals. apply remain and profitability ability towards line deployment growth to Going results drive to approach disciplined continue acquisition our to bottom for both our capital topline we businesses about

Alison Sternberg

Thank you, you, Thank David. John.

the to of turn We call. Q&A portion are going our now to

Operator

conducted first We'll electronically. from Clark Instructions] will with BTIG. Thank [Operator question be you. Lampen question-and-answer our Today's take session

Clark Lampen

things about Good them pressure elaborate now? for And Thanks of the been sheet million upfront Thanks David you derivative of the talk updated right talk stand funnel balance John, just I seeing that could burn. an with Is growth churn, sort so, about a that share? on year. missed guys an on helpful. do maybe would a I'll on with the of front you're about you're I second auditor the right financing, the two. $XXX flowing some that it? on on you ballpark have now. where cash or lot. There's also that cash on what that you ask there and sort sort the John you I lot. don't you driving got now if think, reducing How you you talked of what might could of think that's but little it, guys discussion, of seeing right CTV. of operating bit be update Maybe but runway? feel opinion recently backdrop evening. guidance sort reduction about Anything And ATM, Is top a quickly. you could of maybe gave I've the

John Janedis

too Hey, John. not sounds long when I'll like it's Clark. start short It too though. more is This ones off.

remarks, of question, But with So look, fair we also first then like, on give we both the that. I the call I'll back and look, in in think I more needs. be and think second improve as in guess, then I I the and start to it some things finished think cash to probably with will mentioned context XQ. on And forth the the the the ATM throw And would I one. and And quarter a about and of $XXX expect the question and burn capital David a prepared on I terms asking. I XQ ATM, million you, we couple in cash sequentially how to say it's

signs million to reminder quarter. start of in ATM average was year, there given about raised as early $XXX the we On using I say about macro first the reminder, the $X.XX. the a the the would And the first as of that, side price, a of at uncertainty

stock With we the weakness of that in additional or the have not over few we for have past the tapped needed capital ATM course. to, months,

also they we're The burn. for say cash alternatives would David’s second our gaming raise capital looking business comments our effectively I serve is as heard, reducing you at and by strategic point to to

cash. extend So well, I'd as expect our that further would then and organically runway bolster

a opportunistic, optionality to So ATM we're volatile be market as tool while gives currently. allows us the I in and it great think is seeing a us

capital flexibility also to raise levels. not gives current existing position us that at our We think cash

year versus And and this, on question. Because interesting, candidly, comments sure really as macro start first didn't would in but your you I'm right? think me a softens in lot couple is uptick – last year, is it's macro sports XQ churn with saw QX, churn last in One think tough that way it we tell a June the right? we really of look the at versus up, Let churn this goes was calendar driven third I churn about ask And the is about where year, down starting, slight by of in last I year-over-year you I but we was, typically comp. more quarter, of that currently timing we When of a think think a early. of people how it's July, August saw year. actually good we feel the July pretty versus although

terms of our anything So that's there. business seeing there's point, not this in hard obvious to but if really affecting it at say

terms In the… of

David Gandler

numbers Clark, I I want – cadence. down fubo, in not and the about XXXX. of probably flat fourth here. relatively a David. very – Sorry, the about in if then pre-COVID, were is I you bit don't front been quarter John. mistaken think in a to XXXX long first we I'm is I'll but don't have me, how chime similar XXXX If XXXX, this following of QX you're seeing just the X%. in of seasonal we little think we down I know saw quarter were you've about And or probably versus of X% X% what

I a So risk what is to in I – as any don't of any seasonality. John, pre-COVID terms you're I don't there seeing agree are – this see with the economic return risk.

streaming, in worse highlighted you think to people the gets, month. strong available, that particularly have traditional will the very the that a given less discretionary from income argue NFL starting moving consider to would calendar ensuing start I by the actually the fact, really fact In economy the I television sports

again, overall the macro. very on bullish we're So

And you becoming consumers somewhat ecosystem. costly. traditional on still plus services, million and then XX that, You have burdensome stacking the of are about have million XX to which subscribers in top

will growth. what John record spot. the to good where in So least XXXX. quarter ended I third we think actually At in said, to we're return we we're forecasting as And a that's relative

John Janedis

to just when assumes, growth it – And XX% year-over-year it, XX%. organic maybe last assumes I'd the you which thing call right, the And guidance, look be terms add revenue. growth of at quarter one third would on that, assumptions in of our subscriber

healthy around So but looking the call into into fourth if on I'd growth year-over-year streaming we're the growth on full-year, or XX% say then get midpoint at call you and go fourth And it subs. it still quarter, at the growth. essentially back revenue then XX%-ish you quarter America North very the

Clark Lampen

helpful. Really Thanks.

Operator

Martin next our with from take We'll question Needham. Laura

Laura Martin

Stock XX% hours. there. after up Hey,

done. to gaming about So want I the nicely talk business.

the So – you you're David, at beginning, at New but you're now. look then Jersey strategic sort at beginning, wagering alternatives, to really getting excited the the going of you later from on a year about said, said,

So like can those you actually comments two two dovetail those first? –

David Gandler

Yes. Sure.

question the on around latter imminent. it's So actually New Jersey,

submitted we've New hear we're weeks. hoping back few the already Jersey, next DGE So to in in them and the to from

driving horizon of develop to cost have business capital is assumptions under the around to doing respect appetite alone roughly today. that apparent sports given longer so bullish So be than beginning that that And something gaming still the of the that first the we in break to that Jersey we're we pretty platform. we to the cost cannot of associated season. business in the call, cornerstone With that the a live was the even. for much when on your And a we're we then build of – that that and it's And was were will given sensibility. the the remind experiences think question, investors I significantly time fact just flow everyone go become is what made New an this to intersection I'm reason and want wait the part it's of football cash integrated with video free

still gaming. we're again, very So bullish on

the New in built launch and of quite how will some for Hopefully, be already We we few opportunities it and approval partner compelling. we've imminently. we'll will the the get Jersey pick'em much But games next an out companies could to weeks. other features, other with with look given

also license We or XX mistaken market XX in not place. I'm have, deals if access

coming a business. not to time, marketing well to have a value And have to So at of offer looking same regular we consumers lot customers into of spending the we number basis. some the on the quickly that as trials who's partner money the given in about as are a number worry have of get to

John Janedis

big and And really on takeaway, we're picture add, be burn I producing we're that, to I also Laura, would should profitability think our just our optimizing super path hyperfocused and our high-level cash assets.

Laura Martin

my second question, on is and My Perfect. question last second advertising.

really XX%, actually held I announced which because up would've anyway don't will ad constant, date you you'd CPMs growth strongest you these So been be connected in the the David, – actually mind if numbers earnings. television to

these actually like about talk cyclical pricing it why happened are you what numbers you're robust impression it's you with year-end reporting? and can why can growth So really fix or by because

David Gandler

Yes.

One I tape. some that heard look, we of is high that on not we're the there two been a think and there's sort there's not we're – I've that we softness, across here I focused you the extent but know, So think subscribers. – is certainly very important. and as things Today, quality are macro, have see a to

would male, to audience, MVPD. Our terms audience virtual the about today to is we you which in of the it's just range, say, in most XX also, I XX the XX in fall television, youngest the if And even XX. valuable think

service paying CPM upscale ad savvy. or are those for So a have means that free. similar spending say service, we platforms People I tech our $XX free basis – on plus very premium for which for are supported audience, free a service. a on that They're not would products

some to to the optimize next the months. So very monetization – understand I disappointed we than anticipated to require allow would consumer. about us confident. we time that more upscale that am would I architecture We're very XX What of that spent trying XX though, had over is have a actually

this items quarter, season. now of if the some scalability to which that would've at in So football I by we deliver I of we were advance look against had not felt, able

for a room think growth. there's I significant pretty

one bullish. the I'm hand, very on So

that the but that felt which uncertainty, very control, right say Of I and about next is date of is can't our that quarters. have excited we now to couple any all of course, this in there me makes

John Janedis

And most Laura, XX% our I all and actually a posted when just categorical but know think not you I growth, and from context, that clearly and say the of about and categories don't strongest you grid, if insurance perspective, a I'd keep tech for means the where then say telecom streaming But growth. services, two end. are categories, lower speaking CPG on relatively our

Laura Martin

you much. Thank very

Operator

next from We'll Shweta take our question Khajuria with Evercore ISI.

Shweta Khajuria

Okay. I Thank path in trends? it? is then guess talk question is or really you prior quarter Could driving long-term changed? you. little still quarter-to-date, you about the my you much. question. a what your terms to very and is Thank has bit in that the still? what And Does thought a follow-up of ARPU have it and But to seen hold the target your

David Gandler

where we Shweta, monetizing think are $XX David. and I'll viewership our $XX. a our Again, we start. holding This Look, there's target, our limited which not to audience is degree is long-term still we're to growth.

I able number the XX%, were the some today. you pod have ad relative other a at think that XX% if improvements we addressability, to tech looking around could ad easily optimization, we're improvement areas to few implement of decisioning around that and the accomplished see we

their if give see that anywhere you look you $XX. at you'll of So and look old And call $XX context major I'm just to just that players $XX. that very you space, $X number, average sort it, cable ad school at the if to with TV, in just between, the traditional ARPUs still are for some comfortable an

say, of base targeting sports CPMs, levels. subscriber and our our, comfortable So very think XX I given males be if position layer Hastings us to top really that achieve and good addressability puts we those comments feel able you a on programming on $XX quality to would that XX, I Reed in high to recently

John Janedis

would And I that. to just Shweta, add

[dollar call specific of basis]. terms trends the In from percentage it, a,

XQ ad If trends, we're you right. look terms $X.XX or ARPU, give The the seasonality kick in, XQ quarter in will at about me you of right. was let component $X.XX. at second the

on And show a so an XQ will should we XQ – on improvement. see be year-over-year But basis. improvement also and basis, both growth an absolute

XQ quarter, improve so And so to XX% or if was and XQ get we fourth there. we year-over-year, the think time by And should I'd like XQ down be that positive. the to from

David Gandler

a had just mix And just terms thing of then we've note bit in the somewhat on the noise number, there's fact that last customers. of that a given shift of little that Yes. is in

you As and recently to sub some very know, we we're Canada there. launched growth in see starting

from so And down obviously America. the that ad takes ARPU North

still healthy. So very

Shweta Khajuria

Okay. you, John. Thank Thanks, David.

David Gandler

welcome. You're

Operator

We'll take Capital Partners. from our ROTH Darren Aftahi with question next

Dillon Heslin

for questions. Dillon is for taking on This Hey. Darren. my Thanks

a that were had things. First, if I new in content could renewal. down organic up that the for channels, helping touch then know that's follow-up cost side of sort some lower of maybe success on the you seeing some you mixed subscriber I as cost any with acquisition agreements some side. drive growth Are even for the subs? And

lower an Thank leverage sort update can on in Just those more of get to the any of see you there? the coming the how to future subscribers and you. cost if you sort

David Gandler

Yes.

good a That’s Dillon. question. Okay,

me let deal. the with you side, the on be referring to might start think the Univision content – I

content. you I if inflation. number are that and spending a to in pretty the we are recession see million States we're look, we're on in think, plus a and look And we're just you United the company year where at SRE a if where a – on per close that's line, facing media situation $XXX guidance the you'll significant

of well that our leverage improve the dilute one to continuing done cable to looking we're discussions. So number amount think the to And in we've ensure continuing I that to to we're available. having inventory to is we're package and we're add of continue of line increase that ad FAST obviously things our quite the networks channels in other

John us, with deals. happy the importance received overall, touch deals some the extreme an of value we've additional that on renewed. we let And So we've value as going I that we're there's some far acquisition costs. to this of part But be of think, but area and these subscriber is I'll so obviously think to

John Janedis

Yes.

get things because quarterly the right, don't on to SAC, as the not me number put it, Let the we the of meaning, an continuing. word for or it this actually in but that subscribers relates That there a reactivations. couple on I percentage it good news And we and basis, hit would pretty that's pleased zero number that's think is distort of call SAC. of a it, insignificant so mouth I'm

to efficient push want at more The it, the the good would about of to marketing think say we don't Look, SAC, obvious call talked channels. piece continue I that. from reasons, often really I that. I'd second that could than but X.Xx are of to specific at range monthly hard continues of, terms we've team And look that in on the away we lower not get for and it, to in the like call trend Xx terms end more to ARPU. to people that

Dillon Heslin

you Thank very much.

Operator

Kelly take Oppenheimer. our question We'll Jed from with next

Jed Kelly

Great. for Thanks Hey. taking my question.

then and question, First follow-up. I have a

your and for about platform. potential I talks you're Just you product, with mean, wager circling to integrate back how the it talk potentially and on drive of – are good can stickiness because the opportunity progressing a thinking partnerships wagering I exploring. those the would do opportunity think and platforms

talk about you can are those progressing? partnerships how So

David Gandler

if to or seen of gaming. said will, for I'll I the they Hey, integrations do would product first anything I we’re quote have you those like you of Jed. Day. some on never I to types We and plan find see of prospective to I show candidate, they What say, you'll think fubo is that one, Investor the This David. will are doing you that is Well, those. Yes. we a thing planning partner believe say don't our some treatments want

Now the final clear, to Jersey, still assuming New do fubo ahead we'll receive the in that DGE. we gaming be for go from

right access those but in the go we're markets – so we think not And very did. deals now, as early launch we're market and key those to investors the is message XX to planning conversations, actually given I out we

partners. looking are we So for

roll updated say and We would I becomes the information pretty right But keep we're you guys on conversations, will find slow available. having as we're until partner. we'll early we

Jed Kelly

going potentially I bring where to my going mean, person's we're like XX sports seeing that. media then rights potential to given around follow-up a would a sports sportsbook NBA pretty use other Big just are content what football, partnership more high well. And guess, a bringing with fuboTV We're and college The you up. home. I was experience could [indiscernible] [indiscernible] then as And allow it. interactive seeing the to contract it. a be Got is often the to get question especially to

kind talk about you're providers? of largest future with some Thank you can of viewing your negotiations So how content you.

David Gandler

it's a Look, I want Jed. situation. complicated to very Thanks start.

As you of have market. are fragmenting which streaming proliferation you further services, know, a the

I again, lot that just so right. the you're are mentioned, And to going leakage, of number see a services consumers of stacking,

ad can't see revenue because to games. going less generated people miss games. You're find will People

many can because subscribe fewer see only to going You're people things. to subscribers so

So I think we're position. in a good

and the product As we that that of you to TV, they viewership have. is Most it's of linear recall, because sports because of obviously XX% content fubo offer more we breadth the subscribe our watch sports. sports people but importantly,

of and time, conversations with to important I front really lean consumers different that And And integrated continue the features same them we other to capabilities. think consumers will services. fubo allow choose in So of sort have leagues to of on them it's continue to over stay at offer to I'm to the in. different view

on concerned not I'm pricing. much increased as So

to would will on much we're with relationship fact guarantee sports on a increased pricing I fact, their media given already how say spending the to probably In these content. have of companies are lot maintain that us going

– So fact this shifting higher know are the churn media well, streaming, think, streaming from the say business you on I to paradigm margin or I'm companies same very time, lower bullish from would churn but shifting they're that at margin migrating the and to overall just actually lower services. our I quite to given higher services

a very around environment where increase, an particularly media to in continues to – So I think well positioned to monetization. continue to them optimize sports help cost, we're content companies

Jed Kelly

Thank you.

Operator

comes Nick Stephens. question next Our with from Zangler

Nicholas Zangler

strength could talk your exposure a and political expected with discussed far you curious XQ. broadcasters report I'm about to in more XQ XQ they've Yes. few here, saw We ad Hey guys. some and thus spent? recently

quarter just going this your for impactful if and you So forward? curious the thoughts in was

John Janedis

with that I'll one. This Yes. John. is start

expectation think third it's Clearly, still the we get And much the be signs to going quarter, didn't to it. for tell would too start second I it's money perspective, tell All that an I you from is I we're So political. early. would quarter, the bullish trickling you suggest on in. big.

For back us, the the the ends of half being, I year. the for say up would total, but singles somewhere in to mid it single-digit call it a of probably high percentage

Nicholas Zangler

that these, any do year are to relationships as curious relationships you're just forming direct and advertisers you half spend opposed or And specifically? of again where from the from Great. programmatic direct of agencies in I'm with hearing terms in ad And relationships any of for guys maybe the you back concerns with the those have, if route? sales the shifts then

David Gandler

well color question. that? just think it Sure. I political, So final some Why segue into on actually don't take provide your I very to

also Third time for which football, pressure could not at college significant and but drive the the looking further. will the rates a you're potentially which have the you quarter, cup of up amount avails, think I inventory fourth fourth quarter, only even first in on put political NFL world

– turn because non-political a in spend so say advertising inventory. also advertisers would enough for just I regular, will that not just and there's up drive And

just I the lucky to platform. think be sports-first As it relates to a very macro, we're

see the the So sports believe we're in of going back around to some general. half tailwinds, strong in year I

CPM is probably will sports find cut, get to lower as content, value be think difficult very can where for entertainment I they more levels. folks they you themselves. feel budgets create areas cutting whereas bypass, So could fungible And

and quarter. overall, bullish third still think on I pretty fourth we're So

We some softness. seen haven't that really suggest anything significant would

some there softness, revise advertising to Of is course, did but make not position. I us enough earlier our mention

John Janedis

to talked today. look our political But for CPM the to at Yes. that And point. had on add far or asking David's would you they're recently just getting the I side. on above average far, we're floors I actually political the sides, folks if our

to what NFL call feel it's I makes the because And been about so on that then you we also sports approached tell it, pretty by, and again can valuable. so our access get bullish you, And David's have that can sports, to partners platform. potential inventory mean point also to the across

Nicholas Zangler

is One helpful. here, question served. it tech streaming last when acquiring then just implications rights, Apples, services these the is general of Amazons, exclusively seems sports That’s take content on thoughts big maybe as content Netflix because the though that

maybe to on maybe be So respond here? Thanks. can a that to thoughts just if you see just an guys, you what these opportunity with seems trend and work general to

David Gandler

one tells be Soccer. does has on world X of that and that the I bear Look, about maximize this cetera. release take question even I'll been Apple? Vizio to what the, So like they fubo is company that billion press League about recently on something the the a content. you press very companies within you tell the that what would not content the maybe years of seven to about piece issue Apple. that me say Yes. rights the with will the very in difficult press over any value note if release only one. acquired for their read LG, MLS, for you release Amazon, about a that six half, they what Major available and That seven position a platforms other devices said on Most now, years. et but the it's – this let closely, Is And largest you'll

most experiencing, is the have that, discussions partners. far probably can't about that media is to of folks One anyone two that our I lot of efficient so time possible, direction again, don't audience, has of media. in broken. we side. opportunity terms I cost art find with for streaming I thing I'll most created leveraging mentioned for And a than than that, quickly some experience of that we in create have has I to And remember on distributor What and to but “hey, that in believe note our to continues the consumer. And streaming a been proven but been excited some company people stacking other what very model will we the of services you've able consumers early today TV feel same in is currently more the some extremely say would are and on say or the is the about wonderful capabilities, concerned say just that at effective of of don't you last with and the thought what ever had, leveraging improve is market we much profitable the as the aggregated that bundle. that saying Obviously, as was these like always model that really experience.” of I accomplish ever year work the a be both the over the the certainly We ago. we've TV our the don't evolving time with more the think are is value model

Nicholas Zangler

guys. Thanks it. stuff. Appreciate Great

David Gandler

Awesome. Thank you.

Operator

does disconnect. today's and conclude for participation, presentation. that may you And you Thank your

fuboTV (FUBO) 5 Aug 222022 Q2 Earnings call transcript