Sports-first live TV streaming platform FuboTV Inc. has announced its financial results for the second quarter ended June 30, 2023, and raised its previously stated full year 2023 guidance for North America.
Fubo exceeded North American guidance, achieving USD$305 million in revenue, up 41% year over year, and 1,167,000 paid subscribers, up 23% year over year. The Company delivered ad revenue in North America of $22.8 million in the second quarter, up 5% year over year. This marks an expected return to growth despite a challenged advertising market.
Double digit year-over-year growth was also posted by Fubo’s Rest of World (ROW) streaming business. Total revenue achieved was $8.2 million, up 40% year over year, while paid subscribers reached 394,000, up 14% year over year. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
Notably, Fubo made marked progress towards its 2025 positive free cash flow goal. Compared to the prior year, the company reduced net loss by $41 million (with a $12 million improvement in net cash used in operating activities), grew gross margin to 7% and, in North America, expanded ARPU by 13% to $81.62, marking an all-time record. Fubo also delivered a second quarter Adjusted EBITDA (AEBITDA) improvement of $40 million and a Free Cash Flow improvement of $9 million, compared to the second quarter of 2022.
Fubo closed the quarter with $299.7 million in cash, cash equivalents and restricted cash, and is confident that its cash position provides the company with sufficient liquidity to fund its operating plan until achieving expected positive cash flow in 2025.
Looking ahead to the third quarter 2023 in North America, Fubo is projecting 1,327,000 to 1,347,000 paid subscribers, representing 9% year-over-year growth at the midpoint, and revenue of $272.5 million to $277.5 million, representing 25% year-over-year growth at the midpoint.
The Company is also raising its previously stated full year 2023 guidance for North America. Fubo projects 1,565,000 to 1,585,000 million paid subscribers, representing 9% year-over-year growth at the midpoint, and revenue of $1.26 billion to $1.28 billion, representing 29% year-over-year growth at the midpoint.
Complete second quarter 2023 results are detailed in Fubo’s shareholder letter available on the company’s IR site.
“We are encouraged with our execution in the first half of the year, including posting year-over-year double digit revenue and subscriber growth in the second quarter, while meaningfully reducing our net loss by $41 million,” said David Gandler, co-founder and CEO, Fubo. “With an improving ad sales backdrop we remain on track to achieve our 2025 positive free cash flow target. We are as excited and as confident as ever about the opportunities ahead to leverage our resources on the back of key strategic additions to our platform, including over 35 regional sports networks (RSNs) and more than 125 FAST channels, as well as the Maximum Effort Channel in partnership with Ryan Reynolds and Maximum Effort.”
“Significant in Fubo’s strong second quarter results was our year-over-year revenue and subscriber growth in North America, which came in ahead of guidance,” said Edgar Bronfman Jr., executive chairman, Fubo. “This growth reaffirms the pricing power and strong appeal of our aggregated, sports-first content offering. As we significantly progress our path to profitability, Fubo is poised to continue to benefit from the ongoing market dynamics driving a decline in cable TV alongside the growing appeal of CTV. We are confident we are on the right path to achieve our 2025 profitability goal and create exceptional value for our shareholders.”