FUBO - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by. My name is Désirée, and I will be your conference operator today. At this time, I would like to welcome everyone to the fubo Third Quarter 2024 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Ameet Padte, SVP, Investor Relations.

begin. may You

Ameet Padte

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

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

ir.fubo.tv. to of may financial are we Earnings comparable measures call, our the not Reconciliations available questions during GAAP last on Q&A. With our non-GAAP company certain to to I to the also measures. to Similar will ongoing in the quarter, related address call Letter, website available non-GAAP David. XXXX During which QX at that, also refer any will turn over Shareholder the is most measures directly these litigations

David Gandler

and fubo's XXXX thank us Thank for you discuss quarter to you, today third morning, Ameet. Good joining all results.

year-over-year. North X% notable growth up and revenue, on total on X,XXX,XXX we year-over-year. Subscriber Our third the improvements by $XXX with and bottom achieved subscribers, was growth of guidance XX% up line the the line. exceeded marked quarter paid revenue in continued top million goal was closing In America, quarter our strong, we

to that Our in adjusted XXXX the profitability in months. XXXX. I'm priority. improvement target pleased QX XXXX trailing million delivered we remains over EBITDA a million report This nearly $XXX a a $XX.X to improvement includes compared QX XX year-over-year

cash used provide as to posted to year-over-year John content a XXXX for and portfolio. as shortly. Advertising operating share XX% adjusted flow. net revenue America in North loss, per QX also due net We tough will earnings in improvements our loss, adjustments activities details QX year-over-year in cash free XXXX comp declined in meaningful more well

And growing to trivia of in the we theme or our to add embed plan we live the QX, gamification, brands coming a into video weeks, enabling to encouraged record ad are offerings. lineup to stream interactive Looking without by season. upfront games interrupting polls

XXX more deliver million We pay-TV, than to there still consumer decline the the on our are TV a subscribe million continue streaming subscribers to legacy and encouraged XX Today, be nearly recorded to in that United cable XXXX. by quickly market maturing in of to households a States XX% needs. compared ability

legacy As to by increasingly to Media and survive shifting pay an space. We will report. to by the the In tech decline focus to same virtual trailing according recent virtual to their licensing is been this the our XX streaming, industry companies services. pay-TV It's model necessary over MoffettNathanson challenged believe believe their companies we competitors. rebundling and traditional called economics conclusion. Legacy the subscribed Similar come programming profitable positioned traditional their revenue to bumpiness term believe over some is disruption despite term. out shift to that in to will business legacy media nearly and to thrive virtual months for the TV to big also short the enable have offset virtual long we are way are MVPDs ago, well Therefore, a alternative forward. looking can we grow MVPD view, MVPDs years simply recently medium to the XX% to have clear path of customers and most we profits. pay-TV turn that consumers the

As we and frictionless product experience, fubo. product increasingly seeking believe consumers will streaming emphasize a user continue choose to quality we

committed choice. We offering consumers are also to

Our experience lets of mission was subscriptions. recent content to want our that further realized provide choose consumers stand-alone the they introduction with an them with aggregated content

ruling Bros. Warner stated, Court competition appeal. lessen "fubo restrain merits from place and our on its and Federal despite launch, the as the because, will the friction. In defendants' content VOD is tier injunction the succeed "substantially fubo remain fubo product, stand-alone are With fubo MVPD, within In select the right JV's without Now choosing to claims free its We seek first won a them. subscribe against likely against our purchasing options signature injunction Disney, would and fubo sports preliminary pending injunction it granted Fox to the course, content joint enjoining the can of Discovery. because and in the streaming free of believe JV" confident we trade." preliminary the users claims our offer of that's multiple to consumers virtual August, our for priced in and subscriptions, we venture live the ecosystem main sports competitively

the fight a in our JV only Our against first marketplace. create streaming helping is step fair

expansion companies efforts these sports fubo. suppress entire anticompetitive benefit vertically these will when on over believe the ecosystem. I see service. was presented from integrated is the streaming forward CFO, John have is believe of we our of rectify stifle a prove streaming balanced target. We our years marketplace growth third by and goal And of as fair to greater quarter detail. cost inflicted to John? fight we discuss October XXXX. In turn results Our our by financial media our to meaningful XXXX to for call the practices closing, look We reaching to as trial to now revenue claims critical dollars our controls billions continue damage subscriber highlighted the opportunity Janedis, competition what systematically in in long at and will profitability to of we suit antitrust the to

John Jenadis

an the line the build positively look XX% North revenue to that for continue and quarter, morning, growth good behind see and growth and am of I top revenue growth further the subscriber progress and to just of the fubo World with X%, the David, more and results has subscribers. goals. of quarter been quarter report subscribers on you, about The Rest with North third potential subscriber demonstrate our momentum growth, are World with influencing and America made a previous succeed the XXX,XXX. of Thank every from growth the main attract at our our quarters America our everyone. Rest positioning ever-changing X.XX healthy over I earnings we results pleased ability metric across continued top of our in continued strategies for to pleased monetize, and with X%. to to line the even drivers initiatives we These have over in am retain profitability and to strong the and ending million environment. Taking so and relation operating results

favorably compared has previous our enhancing expanding our is significant subscriber a the share compared a placing continue position marked believe profitability $XX.X loss company's a the it summary, trajectory in net across and to was an third QX positive business. XXXX. to in in reflects its potential solely quarter compared a goals. of robust of a the quarters, $X.XX million our million showcase revenue We loss of on a of third presence us the quarter to also was our efficiency million, loss market to having of loss $X.XX led As This and improvement improvement loss impact a the compared of loss XXXX. Adjusted Adjusted XXXX. was making QX, we're evident our per $X.XX, results in growth, EPS profitability net $XX.X not in our progress in adjusted to both metrics. EPS while substantial XXXX. In reflected simultaneously million $XX.X current commitment a In strong in reach $XX.X improvement loss loss is $X.XX, resilience, EBITDA of QX been an to to to financial

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

free pleased this for we've positive maximize across million cash our rigor of managing maintaining the This with our to are costs In over progress identify business free cash discipline ongoing efficiencies in and improvement $XX $X leverage just achieving a the with quarter. commitment flow and addition, ongoing flow to shy quarter. efforts we the in our company-wide reflects made and resulted million in

guidance. to now Turning

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

$X volatility XXXX posted XXX,XXX in to reflects for and million, $XX X% a full year-over-year maintaining commitment subscribers $XX in and for to our at guidance we year-over-year to have Even This industry XX% our the challenging to acquisition revenue to potential the million exposure the XX% at our projects discipline growth while $XXX to quarter, for million, midpoint. million revenue the year-over-year decline midpoint. On representing between the guidance year-over-year guidance basis, midpoint, year year-over-year quarter Rest XXX,XXX North is we And subscribers is growth million X% our And at representing guidance projects XXX,XXX year the current year-over-year the representing the million million, to subscriber results. a am subscribers of growth market, to X.XXX million quarter. $X.XX fourth now subscriber full for leads XXXX, representing costs $XXX at of pleased the the growth $X I revenue monetization. In World, guidance a revenue representing to guidance $X.XX America closing, American guidance full midpoint. in full midpoint for our revenue, for midpoint. This XXXX North XX% XXXX a of While year representing billion to subscribers, strong billion, year-over-year expect for relative with at at expected X% midpoint our year the growth our and growth. to X% fourth decline at representing X.XXX XXX,XXX

stayed true have thoughtfully resources. principles We and to our better strategy our leverage evolved to our

there's While our operational front forward continues against capture making to like muscle we focused and execution execution see business done would recognize action still enhance operator turn of relentless to on profitability to our committed Q&A. we the driving over vast completely be plan discipline us, goals. I in the much our to now and culture and partners. and remain to believe to We the our innovation capabilities, our our we work for call Operator? progress opportunities

Operator

question from [Operator Laura of comes first with the Instructions] Our line Needham. Martin

Laura Martin

now pay to why prepared are and you. And a my that made subscribers current MVPD guys, one I why sort that's to I why me why and be is, lower is, fubo understand you you My do everybody the XX I only and sports now XX% question MVPD anybody think churn now especially isn't it's I MVPDs. explain fubo is long-term One And subscribers why my remarks Free virtual David, streamers, love as I business you to to think should you for prior better you've because to for the going that don't it have X would subscribers? tier it then cable second subscriber. to questions. is is, virtual you've that congratulations. subscribe numbers, think, you structural to David. in -- available are a the virtual of X available channels, point, we X that moves million. economics said if added Good have would actually over time, your Those eventually, cable of and

David Gandler

you, Thank Laura.

it's So question. something and thought your think that It's just very question, I long good about. first we on hard a

because their free little one, learn sure product, is, do today what to sort to a the attempted want sports and because that consumers make we've what think that we impact are. The into fubo in looking are of new are I we is funnel to bit are more the what as a tier to best about we of coming we it behaviors programming. front able concern manage for people basically it's as and of can wanted didn't the putting for paywall

in And subscriber to free acquisition that putting which rates, potential didn't of conversion just want would front so by immediately, just on obviously tier have drive as impact costs we outcome. sort up an X

and better into So managing ecosystem, them on retaining want as we to back in get the we them and customers maintain the ecosystem. bringing

if right now, So free paywall. John, in that we the features to you creating been are eventually, to front focused tier. like know virtual are of think correct, that that have you will customers don't that? But on we've I free upselling anything add put on I tier MVPD

John Jenadis

No. Nothing.

David Gandler

consumers is what very offering to plethora attract across demand of and goal attempted that Street consumers think engage I look, services. communicate question, the And is second really your Laura, -- then, engage curve. to on we've we're to a focused And our the Yes.

that think product. solid product we MVPD is virtual So the a

I sure really instance, of I'm -- channel watch but climate are weather think, to like, complaining event will package again, that if has that, the a to about or you don't you that make in, you if to, example, of is find for enjoy you services that sure you as that subscribe to there's make care everything. that available number family Even a never want about there they know, inability the anything, people region you. the of want the are I'll people channels, lot a they watch they have channel, to in an may give and a lots you

have scramble don't you to So for it.

making matter wide we offer again, that flexible of people that solutions offer So that for. products I of a looking just a they're it's and think sure are range

Operator

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

Alicia Reese

the could was specifically ARPU. if advertising? regards, dynamics the just were political to I'm at just quarter wondering what a the looking bit in I about little you talk more with

John Jenadis

ads? couldn't I to part the Alicia, specific quite question. the hear of first Was it

Alicia Reese

could didn't little was political occurred political ad ad perhaps just Why regard to Yes. the advertising, wondering that I'm talk driving if you a push quarter ARPU, the the about ARPU? with higher? in dynamics what it

John Jenadis

Sure.

take Alicia, I'll Okay. that one.

expect I have the a the I've did. on we record was said, I others, like So couple think which expected year, front, for and quarters think political now that, have past we what of to to political

the less so around I called on came the was or millions. And we was budget And somewhere, of so think for top XX% which our more year. from year, mid-single-digit call it, or last that in

say, the it's a have. as quarter a a of percentage it's perspective, of, terms not In as third -- significant from ARPU there, what would a not broadcaster look,

of the of ad sequentially XQ, more on a inflationary earlier in the in of terms basis the that last terms of Discovery then limited. ARPU content ad say will, drop expect if say of Scripps so we And ARPU. in terms impact, the I'd ad But you year-over-year is biggest in in thing somewhat year. One was on impact I'd the was terms improvement the ARPU

Operator

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

Darren Aftahi

Two questions, if I may.

the And on it Like ad up question. you the thoughts grow beyond my can premium kind a then that MVPD, following products ARPU, just stand-alone isn't is? profitability there virtual commentary, cannibalization? making that's is your the on packages Just as anything any to pertains it your of first relative than headwind this Discovery to the potential relative faster business That's John. of then to speak and

John Jenadis

right. All sure. Yes,

back So me take on kind a third bit. ads, let little step of the quarter a

Scripps first what year. the a that think in the of decline during we couple think I as to last would Discovery I Look, year-over-year had in we I'm team pleased content say the the is look, so about. didn't point drop quarter of of are of in had second following reported very is in third the doing. But or quarter have a things there number. general And that terms a the we them terms

obviously headwind. So was the that

were second a our against comp year. point, this quarter, on may up we to call the XX% have I last I On and think referenced last

it, if we the take in was, with back, did minus, XX%. an what a for So range, And call the stack percent the our even X-year somewhere the X-ish or had first second in and acceleration, third we we step plus quarters. comp X-year is comp quarter,

So I'd of sequentially not terms And relative again, say, But grow. we're to seeing a again, with growth improvement asked in it XQ. the quarter, pretty fourth to X-year see signs we you that we to would say, obviously improvements, happy of there. want I'd say but expect from and I in XQ we're directly, basis,

your that I few accretive I relates think, is offerings, what can I we the terms offerings. you premium that tell What ago a announced to weeks they around is around In you more question would be it of dollars. there margin tell some this, will as

they'll actually of I think in terms many similar overall margin. cases, in be

of so degradation expect relates any as to it the I the margin kind of business. And don't

think be improve In overall fact, I it over margin dollars. time, will our

Operator

that Ladies for all you the joining. and concludes question-and-answer Thank session. gentlemen,

disconnect. You may now

fuboTV (FUBO) 1 Nov 242024 Q3 Earnings call transcript