FUBO - Earnings call transcript Q2 2024

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Operator

Thank you for standing by. At this time, I would like to welcome everyone to today's fuboTV Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Thank you. I would now like to turn the call over to Ameet Padte, Senior Vice President of FP&A, Corporate Development and Investor Relations. Ameet, please go ahead.

Ameet Padte

Thank you for joining us to discuss Fubo's Second Quarter 2024 results. With me today is David Gandler, Co-Founder and CEO of Fubo and John Janedis, CFO of Fubo. Relations results release management which and found the our in are can of website on earnings our our Letter Investor details and commentary additional available be at Full ir.fubo.tv. of section to Shareholders,

discussed presenting operations the segment, are we filings anticompetitive over analysts forward-looking and trends, guidance and the from our meaning forward-looking results turn everyone including, may business, let a federal plan, could factors consumer materially that to is lawsuit otherwise for including performance, statements the call. to the that results are cover and financial to accounted start those for our our are in which strategy remind laws, anticipated some to, John business review to antitrust Q&A. I to would as and subject historical noted, and the the on with statements operations. financials the of brief like and regarding assumptions. today's will SEC. are Important continuing following Before discussion certain we our remarks condition, quickly results guidance. industry profitability. quarter our but format will statements begin, differ securities the of and practices cause contain basis, statements not among with limited the actual financial forward-looking me within call Then and uncertainties risks, our regarding David response the expectations competitors gaming include plans, we excluding on These of going today and Except former discontinued as the our

anticipated are Discovery, condition in of the with Fubo's financial antitrust other financial this not potential described periods lawsuit. venture and Warner outcome Risks Fox sports impact litigation Disney our respect including and filings. the do launch joint addition, and in company's guidance and detail joint Bros. streaming Walt between the the to the any reflect commentary venture performance related Company, SEC of the in In Corporation further of future to our our

During ongoing litigations, this Q&A, related the any questions matter. will address company to not including

we call, Reconciliations also is measures at to will XXXX in which certain directly ir.fubo.tv. With our measures website these most the are call to measures. over non-GAAP of Earnings GAAP non-GAAP Shareholder financial I comparable also the our During to available may available refer that, turn the QX David. on Letter,

David Gandler

to and you Fubo's Ameet, Thank good us today second that joined you, appreciate morning, discuss XXXX results. everyone. We quarter

momentum to strong have XXXX. our achieved second we a traded since publicly the and continued Our quarter becoming XXXX, in start company

The metrics, second sixth we double-digit paid our subscribers, growth, up year-over-year we quarter closed profitability exceeded quarter North while in revenue, in $XXX.X year-over-year million year-over-year. X.XX increase an in posting XX% quarter total consecutive marked improvement XX% of expectations. In year-over-year America, global of the second North America, and with our million

Note improvements in venture. the will strides John Our are adjusted of at progress with impact the of confidence with This potential execute, exclude teams at cash all to path the meaningful Alongside in discuss streaming on which free net flow, highest our Fubo ad in more gives ability increase us strong, and an we loss, the continued with million our levels. sports goals to revenue, our joint detail. operating year-over-year in also growth, profitability this remains that business year-over-year. making $XX.X ending XX% profitability great EBITDA quarter

shareholder XX.X% sheet. managing to our not These flexibility our agile dilution. and This and addition under XXXX, we of repurchases, further but also debt, confidence premium. mitigated effective underscore strategic reducing achieving our financial only $X.XX. That's commitment outstanding and in a growth value. is issuance issued with average expanding of balance opportunistic our as $XX.X focused operational outstanding stock program, and $X.XX convertible enhanced an to benefit of plan, these to we competitive a price actions driving consumers at in robust as net our execution, boosted relevancy XX% value at an million we delivering on our value well in our ATM of an move QX Consumers from healthy dynamics. value. Fubo In par repurchased shareholder fast-changing were business To debt by fund our market go-forward In impressive environment. price

Bros. services. Consumers content streaming virtual A with frustrated high sports multiple to competition, the fight in of these of for to disruption, consumers similar for with right attempts Fubo, the as approval, XX% foster with to partners all believe better issue bulky premium streaming we price would limit partners cable This better goal competition, is market and prices partners' prices fair for The have and and further Disney force compete with steep pricing. participants the of profits need its with solve inflexible distribution claims distributors, market market Corporation regulatory bundles, leading seen a and synthetically customers choices. against need hikes but JV the primary their boosting SVOD sports benefiting in to to bundles competition to channels sports space. and passionate will contrasting sports prices while downstream with licensing like Discovery. the compete to Warner traditional, each in as We other fairly pay to control market. circumvent in of other JV platforms, the continue about the Their giving Fox competitive the the and but TV JV Walt Company, still to market. options those in well

launch appreciate District have injunction Court, the spectrum. of the the U.S. preliminary New We starting we to across goes hearing Our York from today. received District support Southern before JV's prevent the

interest are negative have impact Hill and JV in We reports be Justice the and profile Department groups for public on increasing continue consumers. content high by earlier would looking the lawmakers, into an distributors that to JV the of weighed of is that have encouraged other and number Capitol alarmed

at We this focused the week. Meanwhile, with judge innovative stores, of and into going case price programming their seamless streaming continue consumers remain points. interfaces services to before a on that log from merits in consumers the believe we've requiring to app to delighting of turn media a recent our different In we and and increasingly product seen months, multiple access look compelling companies content. portfolio stream strongly to our aggregates into forward apps

believe characterizing are frictionless strategy as super we is multiple is this point, best with experience consumer from. users are aggregation the still that same to we from While one, right to bundles fat Therefore, consumer-friendly, these our companies every the indication friction. pain feeling approach skinny have choose the as

Early as the model. our profitability bundles. strategically the skinny all that choose how Tier, is nearly As which at on television trial weeks the super that product. favorite quarter a in We their content TVOD This goals second to within look innovative our main layer sharing and standalone price premium at seasons other time, business. and Fubo their that super is only last certain vision has features John? our Janedis, right to consumers currently Fubo consumers We service achievable Fubo Free a Fubo range soft to the turn of in we vision premium channels market. I cohorts aggregation the aggregator, Fubo Fubo does to Fubo from to them. offer paid investing Fubo our results in the was to Free free founded CFO, content differentiating focused ecosystem, paid require And to aggregated innovation. to in demonstrate a subscriptions bringing while closing, bundles any out on This our content free In SVOD so-called in sports tiered offering is can the to they subscribers. Fubo more launched and users to will can grown first detail. pay-per-view remain build users purchase delivers XXX ahead. In quarter, competitive the which further upon pricing ad-supported We streaming John do love, sports in results to as product we plan play. committed from now financial for is may the return streaming over Free they not our call and the second that's fair greater competitive to truly entertainment former reactivate forward encouraging, the the I to months available as remain choice, balance our and the landscape are and we quarter, the offers efficiently and or an offering offers may fast we and future. continued point said discuss content Free the expand with market.

John Jenadis

everyone. morning, good and David, you, Thank

growth America healthy revenue in of by over XX% growth the driven on line global been initiatives million, implemented believe at environment. Taking the ongoing continuation The to just pleased which operating line Fubo of positions to to for to North are quarter remains quarter, momentum and of $XXX having earnings subscribers. a These year-over-year, driver subscriber a subscribers and million XX% every we and America increase and proof has prior top behind I'm Rest relation second in impact that profitability a we subscriber see from our North subscribers and Rest and provide success strong about with bringing to we the growth quarters positive The continue over metric our to by progress year-over-year results top robust saw strong the continued growth, dynamic report have growing growth results X.XX added strategies excellent a XX% across primary our World. X% of in the the goals. business, this power look in in results overall what World XXX,XXX. build over on and of for

million, areas year a relates some quarter revenue second during ad business, it of the key As our increase versus key period. prior totaled $XX.X the the and to XX% or drivers revenue of

Turning to operational the business. the side of

was in in impact QX prior improvement point $X.XX consecutive of negative quarter XXXX. with progress of business. improvement improvement $X.XX, to net an a margin of gross Adjusted we in achieve loss $X.XX resulted significant items second having $XX.X quarter XX%, $XX.X adjusted saw Our In around throughout to improvement margin we our million an objectives. lowering position QX, led of are on loss XXXX. The that in year significantly we're X.X% of expenses margin. its an quarter recent of positive and Starting gross results year-over-year this in EPS our line to trajectory of in significant million, improvement per basis loss These adjusted positive $XX the quarter loss quarters operational potential a of the margin, a our X.X%, efficiency EBITDA to in a to compared both current we to actions period. loss a us million, while across net EPS summary, improved compared believe as gross the resilience, and negative compared share XXXX. In business. Notably, the $X.XX, million the demonstrates company's increasing a making highlight for the to are expense the improvements our of significant $XX.X seventh QX marking was QX compared negative profitability putting progress strong a well adjusted and loss a XXXX, as from making second was EBITDA a XXX

free $XX.X the efforts to leverage million our pleased In cost a efficiencies rigor throughout and managing discipline flow. addition, to we We with cash across identify have our remain in dedicated and upholding in the in company-wide progress quarter. maximize are achieved business and the year-over-year improvement ongoing resulted

with million Moving to balance ended equivalents the and cash, cash restricted quarter the $XXX.X of cash. sheet. We

be potential that the are this antitrust We current in under impact the the that trajectory adequate our business maintaining liquidity our plan, the streaming profitability. operating towards ongoing of while sports invest the litigation, confident including Note will our JV. to of launch excludes

$XX.X the level quarter we of million, dilution million of repurchased outstanding million debt at also fourth associated convertible which by below have notes. taken eliminating capital the significantly also our July. $XX.X in notes settled of with face structure. In of potential in we value our repurchased par XQ, to while proactive We the have prices $XX.X XXXX reduced steps Since convertible XXXX, optimize value, our

to Turning guidance. our

guidance growth million midpoint. X% year-over-year quarter North is to million America subscriber subscribers, X.XXX X.XXX Our at the representing third

North growth midpoint. guidance American year-over-year year-over-year quarter On While revenue, the million to X.XXX XXXX, guidance representing full-year our third at XX% for $XXX our $XXX X% basis, projects billion, at at full-year $X.XXX XXXX previously America is And to for to revenue and North volatility current midpoint. costs guidance discipline potential and subscriber in representing our to subscribers revenue a midpoint. the exposure is our growth X.XXX XX% million, our full-year industry million, million guidance reflects full-year guidance shared revisions acquisition growth our monetization. subscriber Both This for to maintaining represent to representing commitment guidance. upward billion to $X.XXX figures year-over-year relative the our

However, it for impact venture. account the any does from not potential joint

to year-over-year at to the guidance and XXX,XXX the for Rest our at to growth $XX This to year-over-year representing revenue of quarter. X% a X% decline For midpoint. full-year in $X year-over-year at guidance XXX,XXX World, revenue midpoint, of full-year subscribers a third year-over-year of decline million, for expect we XXXX at X% subscribers leads the X% the representing while growth XXX,XXX XXX,XXX third million, million representing guidance XXXX, million to $X representing quarter, the the $XX midpoint projects the midpoint a

in top line As the and of the periods launch guidance related to business. In our investigation, to venture, a many closing, not and other reflect I'm and financial DOJ's lawsuit the to equally of growth. and financial joint strong regarding impact of future unknowns our our including Fubo's the given with condition potential results anticipated the any ability strong our venture joint the post do potential pleased subscriber reminder, performance outcome commentary

It every we that we be opportunities just is by to how to still maximize call to working, While to long-term operator the we in we're to do of the and added ability our of in our clear turn strategies ability recognize Q&A. see providing with front for confidence to shareholders. I would partners much us, business. there's employees, capture value done operating best our improve are like to about efficiencies us to over encouraged Operator? improve deliver the aspect revenue our and now work

Operator

line first today from our [Operator comes Instructions] like And Laura it question with looks Martin the of Needham.

Laura Martin

Could on slowed with us a growth about the ads. update an give My year-over-year. you bit give in thousand update generally what's cost first us for looks -- an you us and you ad on the update one is per on what's little Could happening guys? an market happening XX% to give like

John Jenadis

a Yes. Sure, Laura. things. This of say is John. I'd couple

your a growth comp to the I'd last So several percentage on XX% you point tougher was side, posted, call to it, of, relative point say that ad year. the XX%, off

comp less same and growth look basis, or the was a you on kind at if so And basis of a X-year both X-year rate stack more for XQ on XQ.

CPMs we're strength for across sports you comp that. do So, XX% about sure remind have to is CPMs One what continue What a you I'm that can I'd I'd and like start as also talked relates quarter. From us with marketplace? look that that happy is tell we a there. the the around, to see I this in we so third a things. you've in perspective, lot the CPM marketplace of a couple quite

skewed more sports most. we're know, towards think, you As than, I

little currently. say, of that the, tail we're particularly pressure front, a CPM On entertainment, longer there's seeing bit entertainment I'd

Operator

question of our the Wedbush. Alicia And next line from with Reese comes

Alicia Reese

If bit you the quarter to appreciate you in see the little expect in and also advertising your the could third around retention subscription a quarter about talk the performance that. I'd Olympics, that

John Jenadis

Yes. Sure, Lisa.

on Maybe So, pleased bit advertising more you quarter. flavor. very give a with the the side, little to were look, we

is so news On all basis, built we team reminder, outperformed meaning would portfolio, and top terms categorical dollars overall categories a out they're good year team of that sprinting our the the here anniversaried as actually Just that ago, I above X say XX%. the about a been also a or sales the has so in since.

included of auto, bit call strength, in terms entertainment -- say it, the and those e-com, among others. within, and services, among saw little financial that we that food so pharma. tourism software I'd on beverage, And on a travel, and side,

events in have As relates subscribers that to are Bowl. to tell say, in cohorts Super view one-off Those Olympics less tend short example, retentive that what the the or general, you it the value. Olympics would for we I nature, or, is

them. doesn't so marketing pursue team And our aggressively

Operator

the with line ISI. question from next of Jian our comes Li And Evercore

Jian Li

you I us to give service. or, America move more driving cohorts? profile? ask of on like, North retention the the subs the into that part into also, kind learnings Great. more it Can to And so this kind free bit is churn about actually of out the just a plans on far? you your quarter? Are needle roll want of details seeing And outperforming this just you can expand if your ad-supported

John Jenadis

Yes. Sure.

think the in well. I'll as on roll discussion I So, the premium fast,

will, second on freemium to you way you it say, I'd of if this it's mid-to-late retentive say, I'd our amount so we're relates then or a pleased the to way I'd as the this early. platform, growth soon what aspects trials, month-to-month you retain increasing means it's those call point, it think, to churning say, launched ad we're at really as who of time, And of usage I up them. the week-to-week. speaking, as say side. I'd if too in for will, relates to end and say it we broadly as freemium getting I'd getting, At extraordinarily that out to suggested, more this. And quarter. try through we're terms

a happy it, say we're would this, XXX there, More what small channels. speaking, with that base. call seeing So, fast fast, not plus although terms we're I we're asked in you also that of broadly it's off in, of

growth to to business. growth see to both advertising strong relates the very fast as it We continue viewership specific and

David Gandler

as is at has service one that around add that indications, out. work really time, that early Yes. reactivation. we there's rolled be the volume the are understand same churning in customers way I'll focused, to more on out with more said, better we're on specific some just think to to that do we've But And respect we're strong is free that, into you that piece really our seeing get A/B testing I the funnel. some back done how which

compelling, other resources that early be very sense it that makes and out to we'll to expand probably begin behind But to if see again, we'll put indications more now. very working seem So, on for and soon that cohorts. then

Operator

Research. next David with our from Seaport comes Joyce of the question And line

David Joyce

America. net if other of that the some were obviously, Congratulations biggest of all. But some on second, the was on drivers just There in drivers ads the North streamers, I balance management, content please the wise, virtual in drill timing were could there? sheet there? were down not some the first you strength issues real had What quarter. what But wondering, MVPDs

John Jenadis

couple also things. that Yes, you events conversion, and later David. drove quarter. a will, the One I'd of I'd both some, we in say, trials had sporting highlight is that if

that would I So, one thing say. was

I would guess second a content I I we The in, target thing, we would as you quarter, as saw we we say didn't dropped in came thing the the better-than-expected too. And say Discovery terms in of well. see I'd big as And also I churn as our say Warner earlier then say that the know, then bit SAC we there. we finally, our expected as below and the have a an third of SAC would Brothers was -- for range quarter. would result, talked about impact

David Gandler

done of year proven the other behind to for major nice at the be adding and had job same I year baseball sports a it continuity ensuring and a networks work just marketing some well seasons last YES think cricket really calendar, this that I was was two We than us. with strong as generally sports it respect soccer our speaking. championship, was stronger as the there add regional some that to strong events, very we've would time, and Network RSNs,

Operator

And question line from Jim Barrington Goss our of with next comes the Research.

James Goss

to an your you some competitive TiVo something All for might Walmart, that using OEM if you right. consumers threat? option of impact else. on potential on into efforts without view I get the wonder do the of How as services a comment TV and VIZIO, options provide proprietary connected TAM.

John Jenadis

one? that take to want you do David,

David Gandler

Yes.

how not Jim, understood. are services? of just sure Sorry, side? competing could Are were sounded on I you other like these fast you It saying the rephrase. we some with I'm saying you Sorry, fast if

James Goss

threat without you the I'm an proposes a if same televisions, gain if including of sort a that certain opportunity that to individuals needs of that fact at to the programming, have And lot buy having wondering access lot all. the you'll it fast Well, a service satisfies of of you? competitive just the enough Yes. to channels a

David Gandler

complementary. comes the fast the for of really within service. X% business is paid Well, from viewership our fast us About

so still churns access they'll free the have consumer to if And channels. out,

of We millions that come the have -- organically there's platform year. people through every

abundance engage the different you just it's more consumers we the of said. capabilities, premium highlight opportunities incremental us, connected and and to programming for the really So that features, have devices, as the

thing in I relative people call typically it about is these different rooms. OEMs that OEMs interesting different have think to homes, their in most televisions all the have they Fubo that multiple plus, X

is seamless different And having that I so devices, appealing. extremely Fubo that in use think, can way which you across

And more I so development potential at competitors. moment direct in at partners them look business this versus as time,

Operator

the And question comes Nikhil J.P. Morgan. next line of from Aluru our from

Nikhil Aluru

given there wondering with look for then to still can that ended touched any you David, you with looking subscribers, was that confident on without you retention the way I Is the both what those those on balance additional raises? anything breakeven be opportunistic about feel us just great sporting Do second, might kind before wrong retention you comment the the capital? events expectations as capital head of job I for management. you of mean, a like. And like tell further the have sheet. effort Obviously, XQ you those into you could potentially customers after if the on the events. end?

John Jenadis

don't on the I capital... Why start Yes.

David Gandler

you part can don't out first just close Yes. take question. and John, why Yes. second the I the on then

they're deliver job that provider piece, So that drive essentially, just for. looking experience the large-scale are very And look, the the retention events the of these to lot a is viewers. viewer on service of

for sure years, about viewing is with We've their starting back is can customers This in and And that many XXXX. is on do so make add that services. What that of to them this we churned the done. behavior the would it available to to programming the and Cup typically I why wanted to World becomes service customers will reengage these to Liga seen continue their learn free return. job many, we have think come out what MX, for and more will important them that a take focus reactivate really the is lot soccer

So to retain. overlap is team don't the Olympics. doing the Still I the will and that there's the really soccer best soccer somewhat job to say think they fan can a I the between but early know, strong hardcore viewer,

say, slight be early expect could but do events we in. still So, associated with that cohort given that came size those there the the churn of to some

John Jenadis

Nik, And structure what we structure believe our And funded is, the we what plan, do I dilution. I can say relates impact the we continue not can't question, the would excluding to sensitive potential But that to say as is JV. would operating may there capital to you'd the capital of we to on that very comment or it say that are are expect, capital our I shareholder on look, execute I directly. as may or what on

Operator

from ROTH. our next of Aftahi And with Darren question the comes line

Darren Aftahi

raised question dovetail you've you that you the given like a in competitive employ changing? of of approach have, power light that, half, your And do going Just of what in you'll prices feel kind in landscape strategy curious, as forward? marketing pricing does a a that then I change Is the past? anything guess second

John Jenadis

is done think amazing has job. pricing side, Darren, team Look, I I maybe that thing, is on what say the an simply would the which one

$X would but now, As churn better the seen actually than you that related raised line know, say -- thought. prices would is we've in we probably to to I say year. have we've this I'd

And some to the have the we power question? in pricing go business. Can we first think back so still you

David Gandler

He must have was What it? cut off.

John Jenadis

Yes, tax. Right. marketing on

outstanding as think, of has and There So team done, they're we preview it would not is, relates making get first with an that what on we the when the adjustments look, will driving you. to in side, subscribers. to next terms third I of be going call, the I today, terms job will certainly Certainly, in the I'm say second marketing earnings to share quarter's some but the quarter. that quarter that

Operator

final Fitzgerald. the our And Brett of with line comes from Knoblauch question today Cantor

Brett Knoblauch

sequential in content much subscriber-related quantify the off improvement other platform? there? expenses. Brothers play you is removing Could that factors Warner maybe how of from came Maybe at the Or on there

John Jenadis

Yes.

So to expense, Brett, SRE on few noted, think, saw, line. on you year-over-year we the subscriber-related improvement the point XXX I point, as a basis your

will improvement I before any in continue is going piece first We as We also know, from -- improvement saw I you even what to the the can item I greater what said to as But line quarter that that of we see it think, tell to with get you second specific, quarter. don't content. relates specific forward. what is consistent and

expect specific that the I to in in also more so can't than the get again see And again, and fourth quarter. quarter But third that.

David Gandler

the add of one of Discovery and it's other different don't combination just drop. just a more mix content came have as other is negotiations customers Discovery, types I I that think driving Yes. to into you just some want packaging. and up thing, that This just shift just opportunities transpired activity well would and that

not Brothers but culmination certainly it's to alone. Warner specific So, things I think of a

Operator

today. And the questions have that is we all

now joining, and today's for may So and all I to Thank know, you you ladies disconnect. this concludes call. you let just gentlemen, want

fuboTV (FUBO) 6 Aug 242024 Q2 Earnings call transcript