FUBO - Earnings call transcript Q4 2024

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Operator

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

Unknown Executive

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

review let today's format call. Before we the begin, me quickly of

plans, will over the David business, and our the will quarter within contain financials guidance. our industry Q&A. like the and and combination, consumer regarding I statements including, financial pending but trends start call discussion the with that limited and to regarding growth and on the some turn Then for forward-looking analysts and federal remind we will to our the securities brief cover performance, the may laws, and remarks including would meaning of John financial profitability. condition, following business statements to, anticipated everyone expectations not strategy business

subject noted, are discussed in uncertainties results as from are statements statements could and the forward-looking to SEC differ are forward-looking excluding a filings, former actual today historical are that factors results to otherwise we basis, as our are operations gaming and results of which accounted presenting our the except cause segment, These continuing Important materially assumptions. for on risks, certain operations. guidance discontinued

Hulu Live to have what non-GAAP QX provide most any measures. matters regulatory letter, financial Q&A, during our certain well refer TV business is not shareholder and Reconciliations non-GAAP Please we also available may information GAAP comparable combination will on directly the which we measures measures ir.fubo.tv. earnings our ongoing these the call, at to website as the are shared. company During that XXXX note available related in already of + to also with beyond the

over the to I David. that, call will turn With

David Gandler

revenue year and Fubo's to billion shy the and just you Thank America, XXXX company. a record year-over-year. joining appreciate in growth today double-digit quarter you, good Amit, was fourth us revenue, results. year closing the full in $X.X total morning, discuss XX% up XXXX delivered North of for We everyone. year We

the subscribers We was our XXX, approximately year record guidance. up quarter, In $XX.XX $XXX all-time total the highs full line million, were metrics year-over-year. user hit in in X% average Both expansion year-over-year. X.X% the with delivered in and an revenue of Paid guidance. X% also America North fourth revenue quarter, $X,XXX line up year-over-year, in marking region per with of a fourth in

execution towards As adjusted we over cash new XXXX have amidst we operating fostered to environment. $XXX more industry by results we an that These free goal, competitive One Continuing reflect for our our a continue team's year, into with strong and drive focused year. the our second the profitability improved performance disruption. EBITDA the benefits year million also consecutive flow consumer. full and

LiveTV combine will and brands a In will Fubo, players make space definitive the Sling. by company, team the combination, Plus separate DIRECTV, Fubo. consumer TV management and Fubo TV will Plus YouTube distinct to behind with pay we both Walt Under that sixth and the Hulu CEO. existing trade continue on Charter, under operate the to Fubo in and combination This lead Comcast, to DISH player announced Disney I will remain Fubo's largest will Company early subscribers January, LiveTV Hulu NYSE. larger continue The as and agreement which the

anticipate competitive a ability result, As offerings we to offer price points. more more the competitive at

come existing for flexible greater experience options their offering them to needs. our include plan multiple sports, our provide with stay bundle choice, making to These streaming the their where to but Fubo, are We on for enable the significant consumers entertainment. that progress consumers tailor sports-focused

bundle sports and fall service favorite Hulu broadcasting this independent entertainment service a entirely new sports the TV for Plus We intend lineup sports season, This service. the transaction. it of college forthcoming broadcasting sports. Live launch and their focused will is and pro and Hulu feature to TV Live + new and a robust and of

Fubo has fair always envisioned consumer streaming marketplace core. the with its a at

shift Comcast We skinny demonstrated are bundles. and helped content an was to DIRECTV's This have lead to new most by excited consumer-friendly sports recently industry sports-focused more offering.

even and as have bundles consumer-friendly sports a offer skinny service Our consistently in we competitive forthcoming always the wins. more industry, broadcasting asserted will consumer

end, we plans. programming. we XX is to launched family be supplement linear focused appeal as stand-alone channels diverse channel the many more across add-on family South limiting a want that To serving to bundle demographic. last content this week, and of Asian bundle a not communities. or bundles our to only Sports Fubo our with one we a programming that purchased country, different unifier Z of robust skinny other of can sports as ensure is Z to types an

believe smaller skinny We additional super plan the strong fit full segment curve bundles multicultural bundles launch and for we us, our point along to the this demand strategy from of packages free aggregation a content every flexible can multiple programming year. growth and at delivering bundle. to be to streaming These stand-alone

the to subscribers. renew when into lowered That be by with enter not the to Univision plan to only We our Instead, on based taking our deliver only agreement we sense agreements approach. of that to value was are Univision customers. The decision distribution increases makes is subscribers. our These choice it our different a price deliver our tiers greater passed content on to for will and with why Latino subscribers. appropriately must long-standing value the demanded, priced costs XX% been we and rate significant would our have programmers

aware This savings is service streaming first cost temporary that with we has time credits. the consumers any shared are beyond

with and to time programming other replace over Univision high-quality content with commitment aligns forward, better we sports affordability. Moving flexibility that plan our to

be pivotal strong many was our meaningful a marked Fubo, with by for the XXXX not could line. more to excited closing, and for year ahead. subscriber revenue We overall growth In We bottom opportunities improvements opportunity the the position market, partners, our competitive a could significant media shareholders to us to for believe stakeholders, player drive pay consumers, alike. TV combined and all with [indiscernible] value in create more

look in to forward results will the to our We discuss detail. over I to Janedis, you our John? updated latest on call CFO, developments. keeping now financial turn greater John

John Jenadis

morning, everyone. Thank you, David, good and

is landscape. Our year financial highlights trends. and consumer our operational fourth every and across just about for continued landscape media execution aggregated made dynamic fluid positioning progress validating strategy, full evolving initiatives and metric and in a maximize XXXX Fubo's evolving results and long-term content and platforms of our operating success quarter Fubo reflected This a

of America Taking rest of behind look to growth the retain attract the of of To for am subscriber have we I of North been revenue monetize end, revenue to North X% at top this The growth line subscribers XXX,XXX. a pleased America primary our continued a and ending with America see results rest North report drivers and and quarter, our continued growth growth the XX%. ability healthy X,XXX,XXX growth with to that in the X%, subscribers subscribers. quarter of

delivered ARPU markets From high This standpoint, primarily North of all-time monetization, and attained $X.XX. to insertable revenue to our with in decline both decline in ARPU of content $XX.X result we XX.X% advertising ad adjustments million, America of ARPU content respect as we an global $XX.XX was due a portfolio year-over-year. XXXX. of an a ad in the of With World Rest

line at look operational QX, net a expanding our top the our the continued improving Taking XXXX. EBITDA on favorably laser in to business, million side is to loss our $XX.X progress loss metrics. on was in a fourth of growth focus reflected quarter efficiency loss million QX improved of profitability to in while million of a Adjusted comparing $X.X loss $XX.X compared XXXX. the of $XX net million In

Adjusted $X.XX, in an an compared to XXXX. of QX EPS EPS loss adjusted $X.XX was loss improvement

to year-over-year. I to share flow management underscores financial a $XX.X to significant to of am business cash this of the sustainable commitment marks million positive discipline, free a milestone. flow cost report generated Turning first growth. excited am quarter that cash and Fubo's and I happy This improvement free positive that was million our $XX.X cash.

by remain the We our further financial ahead. performance to progress encouraged quarters in enhancing dedicated are this and

million the balance to Moving cash, cash by at ended $XXX.X the and third the of and equivalents $XX.X restricted sheet cash, up with end the quarter quarter. cash $XXX.X flow. We million of from million

potential We recently current the significant and capital across place our Note progress that the markets. did not highlight trajectory include which our took XXXX believe results we financial and access In both in payments the announced with demonstrates summary, business. cash not our settlement, the made our this our we resilience. associated have does January

investments business Furthermore, broader endeavors. we sufficiently and execute liquidity are our core will confident support the on that strategic in

Turning to guidance.

is a projects million X,XXX,XXX the to Our first revenue subscribers, at midpoint. our decline to subscriber guidance quarter guidance North X,XXX,XXX million, growth representing quarter at X% $XXX midpoint X% $XXX the first while year-over-year representing year-over-year America

of outlook this expected recent that potential Note nonrenewal reflects the our Univision. impact subscriber with

XX% world, of at decline while we subscribers representing million, the a to million Rest year-over-year year-over-year Regarding at in our guidance XXX,XXX midpoint, the the decline midpoint. $X.X revenue expect $X.X to projects representing first quarter the a X% XXX,XXX

closing, volatility maintaining subscriber and acquisition relative This current Fubo to guidance monetization. potential our with In XXXX in costs our to am I strong pleased aspect both structure. reflects line with industry We across to results. expected our subscribers, momentum drive enters nearly exposure every our discipline continued our significant we of and in as top cost revenue anticipate efficiency and growth with business improvements continued along in profitability. towards commitment

redefining offers the live the and live now the of operator that believe for I to the TV sports-first consumer over by to value would Q&A. a streaming. like model call we to consumer are turn dedicated significant future sports streaming championing We

Operator

the David first from Research Our line question Instructions] Joyce Partners. Seaport comes with David [Operator of

David Joyce

with Baseball Is those into Disney something out pending fit the possibly opting opportunity and With with League after forward going Disney's Major Fubo that ESPN year. your next somehow? is strategy for could rights? that What your of relationship

you And related to conflicts reversal the ESP to manage they're going of with type you or the the still programming when any be that, MVPDs? and how flagship offerings on between would the partner

David Gandler

this Why John. you. Yes. don't I take one, Thank

partner attempt well out we of leak. the the the in to obviously, and all market as So as programmers with

League is Major goal I relationship Baseball. continue we a with think So to channels. primary the distributing But live have

second it League of the Major as work ordinary look such course. to of to to then in question, that issues as don't really some way run decide should we We're certainly will for at Baseball in Padres, managing Disney. see teams all your And the any continuing The a sports go part with the direction to business So together. we as out local our did figure

We have a relationship.

multiple over to is and deal that and for channels them we'll Disney with the deal continue years, contract. distribution licensing a have We distribute

Operator

question next from the comes of Sholl line our And Research. Patrick with Barrington

Patrick Sholl

pricing service potential was you guess, the just the I I for, wondering costs networks offering core importance within just the are higher broadcast can if the about relative and and cost those and assigned talk maybe sports you or the and I content set, there? their the relative of guess, Fubo like for,

John Jenadis

It's John. Maybe I'll start.

On say look, to fair would difference soon the but significant say it's be to too it's get pricing, a will I that percentage specific, basis. the on I think

them to As I for, to have reach curve. are we the what looking demand along another think potential look subscribers opportunity we

widen the think us. do for should it I So funnel

a of the that Was may part second there I second or? programming miss on part? question. the costs Is

Patrick Sholl

costs. programming Yes,

John Jenadis

[indiscernible] there's cost, quarter we but us around into the programming offering. certainly to going more deeper route get on I give context be you would X give another kind just to as that of Look, or say Yes.

Patrick Sholl

result programming guidance is more sub on the are of terms just in that of within shift? Fubo the subscriber then offering? mostly -- And the losses the the as -- is challenge a that that is Latino kind you it Okay. Or year-over-year broad-based provided, of

John Jenadis

Yes.

that me a Let bit. for you unpack

And first subscribers. on to subscribers so basis, of expected for would a we When impact the grow Univision. quarter, adjusting have year-over-year the for

year-over-year ballpark say, growth better that digits you the in to, figure, we be slightly give reported the I'd could fourth quarter. in, say, X% the mid-single than so similar And a growth to

we a the just the half second and a a meaning also on sequential seasonality you of back the in take see growth basis because more the and SMS to of typically year. is step it a me And in half in then bit our as know, first year. decline let there And unpack business.

for trajectory so pretty think feel QX I the And again, Univision. about we good ex

of tell year, terms [indiscernible] over that the you In growth we expect overall subscribers I that in would with

Operator

next Our with the line Laura question from of Martin Needham. comes

Laura Martin

sports for an an of Or could a existing so, the on subs? of whole been as pivot could would away is how that sort guys. Do The maybe that for first process mostly if opportunity one an additive see subscribers you do is you? Disney as interesting Family the from to sort for And upsell have be subscribers? think big onboarding that new TAM new be you to sports-focused you that

David Gandler

I at not say is wouldn't moving all. from we're David. Look, this Laura, sports away

think last year of sports I offering. to the we Cricket announced addition our

extension. And so a this was natural

stated, This and demand along also curve. goal our attract aggregation our our super customers the John just As well funnel really is fits expands very with strategy. to

So want programming. of provide to we slimmer bundles

the to developing sports in over And we're have platform through get around we for going some the product, monetization our upselling the I we've that similar an consumers in. where way to once entertainment. very able we years, built of drive interesting on customers strategy. been attracted think we've been and is excellent sort And This think we've them trap have capabilities

we're of what sort to excited that out. test So

acquisition better been. where are there could happy retention. today. it's And we we're than Potentially, be significantly lower costs, healthier ever very business overall, is with The

John Jenadis

Laura, terms of add and I ] with on one happy packaging. we're would in would what [ weaker seeing just that And we're say that I we're is thing

Laura Martin

existing it subscribers? subscribers And Okay. to is different upsell or

John Jenadis

I think it's too soon to tell.

it largely would a upsell think set different an of I or subscribers. be

Laura Martin

with could what's and on dynamic. can downward there talking bit world in a CPM about your advertising drill how of And pressure on advertising down you Is going the talk intriguing had the with you Okay. words press really, advertising formats we expanded in you your then pressure? in suite unfolding these about release And XXXX. ad CPM you little

just on of fourth a piece you advertising efforts and could the into into of the with quarter in going sort XXXX? And drill down first the quarter

John Jenadis

would impacted Discovery Yes. Look, fourth I of both quarter, I'll the and on by Sure, Univision. results start. were the Laura. drop say

But for I'd digits what sports vertical. our the line say with so the And we the you'd would of adjusting marketplace. say expect, so by double was performed, up in during I'd business led say, saw broader as I we those, likely more terms in direct quarter, and

but weakness On out, I that on in pricing and the I sell front, we healthy sports relative it seeing to into improved say that the into somewhat. quarter. team anecdotally, market post the election, softness CPMs. would the has say remain pricing entertainment some March, our we like the see or in are did first relates uncertainty feels would as continued I some heading I'd say say, tone

I'd perspective, March than should growth a from say So look better February.

directionally, see least upfront. at early, it's it starting XXXX maybe early Laura. we're And Thank you, to relates the good although some to as interest

Operator

BTIG. question And comes Clark Lampen line our the with of from next

William Lampen

John, just deceleration I the of one. for some I and But over sort some were different. could if we've growth And one, had curious, mid-single-digit of XQ of a very take being the discovery David thoughts growth talking of if seen I'm we happening? pull sort picture you not the slowdown Univision what's a throughout you headwinds sort years industry, in about QX there both. know bigger last and back from and provide were and your to view year. around relative X

Do if we Are price maybe in perhaps year? migration rate avenues of better we sort so, traditional and sort adjustments? importantly, do go of about level sports able reaccelerating forward? the bedrock enthusiasts offer we cable? you guys to as of something the more package the hitting later different and what for the and are being Or think And need how

David Gandler

Yes.

there in a lot was Sorry, question. that

down bit. see me can break if little let that a I So

market. terms States is I United in relatively a mature think the the deceleration, of So

million which, about virtual, side households TV of have I say, traditional million XX represents probably would between around $XX pay traditional and or the You so.

So for that still think growth. pretty us, significant there's we

likes still secular business, The maturing, I streaming the to Fubo number and coming other Netflix changed is services. There think which think well side, of XX services general. space the of the a SVOD from months consumers I the MVPD is for has of bodes the side strong what moving in of of dramatically last also over traditional and cable virtual ad-supported tailwind out the SVOD think, I But is streaming.

I has the from virtual more SVOD product type more pricing There's an escalation our I these the sort of think we've of is seen they're MVPD happened line think or that we've or last cost of space. escalators on years is in with programming or growth over X% last seen X the is becoming So services. X spares shows say, TV what I which years, SVOD X services, about in almost the should competitive. fewer But over X or

we people of maintain about competitive programming, it's viewership so getting more to done excellent And hours an continue just job so XXX convert. we've think to a Our or product. I

You our over a also last the as reduced of couple percentage we've may years. have noticed, marketing spend of revenue

been then. time like at whether a an so have we fourth flow streaming now But TV we on look XXXX, the focused And should deliver deciding on much go we've a have back TV we probably still a business. SVOD healthy fact said Fubo. think that or cash highlights harder are ensuring quarter really people service platform clearly as or I track platform to pay they that And to

or into point. the Ultimately, X when you're of sort you aggregate products, cost the without price these of ad X of services getting

marketing with probably So this my companies we're advantage And media of media from everybody in little different to value churn spending providers. streaming maintain allows best it companies, hits the to it the I over and allows these comments, consumers, of sparse reduce for opening service for media to allows provides take of provides I each services. amount and the best going said value time, those a be lower more competitive think bit their at as aggregated an to us

John Jenadis

just Clark, least seen packaging the one new months lower packages David And we Yes. very them at pleased the the and first of we're would what with thing over marketplace. side, actually what on in I in guess, of top we've X both I fourth or said, quarter, X out priced, X the having add on -- rolled the

William Lampen

sort You on guys put of guys to go-to-market? and but clear market. better in the I'm of guys I a guys sports at of X-part what sort the Is have what, that as had essentially programming guess, published sort all just I am before, think the of make I that about resonating think -- is It's broadcast point. that sure do important right, oversimplifying? of you gaps with question differentiator sort is you how I that a you guess, in price filling Or I that

David Gandler

would say XX%. that's I about Yes,

think we in continue other probably fact our I to the $X.XX improve that the product. lies

taken really in continue to some that particular, really features, team is one It relatively thousands might in our is We the users additional features. has similar. to impact which developed picked seems have actually off in-house have as the up had of AI quickly. Multiview capability, traction our add the feature same which on feature Frankly, channels industry, hundreds of

MVPD for more for value consumers gaps our to value product. options think deals market them, we we the flexibility, better time. that And drive over accustomed the you going becomes in think fill the we space obviously, as our as continue to we'll with be renegotiate and we're able ensuring can virtual to said, create and So develop more to

Operator

JPMorgan. And line Aluru the with our of question next comes Nick from

Nikhil Aluru

Fubo So tier have of free seasonal quarter be first I roll-off where believe you active. the this kind the would

update So at as that's of early term, have paywall tier if free longer if point? the to and insights front the you retention discuss move tool? And you would there your you some in thinking any how worked any can a

David Gandler

Yes.

the the the of that think is I month think the through I point history major month, retention in the company. exclude we've our the best December improved rates. I COVID one reactivation seen Frankly, free if tier was you think December

that we're to different work have. So we tiers the continuing on

retention easy obviously, is Payback And task time. significant number about very where from the pretty when we you good in of way, platform are a a improving, feel coming which, to channels not by remove of an down. short we're the periods starting period are.

we the going about growth So it's forward. really very Again, we're as well we're and said, future, about positioned when But growth we're think ready. sustainable John excited for

Nikhil Aluru

unpacking one XQ the I And guide. Understood. more, if could, just

You talked Optimum was impact. benefit acquisition the front MSG on of Networks any at kind Univision related there a material blackout maybe subscriber to about But the

John Jenadis

that improvement Yes, benefit. we'll or not was when would Nik, on, legs that I anecdotally, this event, modest a that But a say is not. we've that's in has QX. a a occurred. I'd see of how event that tell of QX John. I'll you take now in saw modest block that. we believe terms QX had terms seen in back much benefit But that or I

Operator

final our comes line with And Huber Great. today Doug the from of Research. question Arthur

Douglas Arthur

Yes.

Is operating there expenses, dips line some Just the every unusual, haven't a Was down that been here. quick, there particularly and John, was the the categories, a document were lot. quarter? on in in of terms anything G&A a like -- doodles in there through I

John Jenadis

thanks Doug, question. the Yes, for

So of you there point, few benefit so double-digit fourth [indiscernible] for million in is that run line a some million rate like would there type quarter. it's and a number a are XXXX that, in tell that your basis, probably on I more maybe to Internet. item, the low dollars

on before, would comment dollar at year-over-year David's To improvement, we add if buckets, basis. the absolute other a just if you look will, we cost that an I saw

across I capitalized have some in PT. not seen we costs, tech think and dev would and see marketing, if also both we in that for that

to continues right in be leverage the operating direction. moving the So

would to are. investment team in that the I and a this, you're on And flows business look, cash about from broader the you like the those say I our perspective, been has not since add, would hyper-focused just reaching that mentioned talking but expenses, balancing

it, And were EBITDA call XX% XX% so adjusted in our margins in 'XX incremental 'XX. and then

flow significant. on do improvements I even the think, cash and with margins and the very are so incremental business outs, the ins still And

Operator

may That disconnect. concludes today. call And all and you concludes now day, great also everyone. our Thank you joining, a our for Q&A Have that session.

fuboTV (FUBO) 28 Feb 252024 Q4 Earnings call transcript