NEW YORK—FuboTV reported that it lost 110,000 subs in Q1 2024 but it exceeded its guidance for the quarter with double digit year-over-year increases across key performance metrics in North America, including 21% ad revenue growth.
Despite the Q1 sub losses, it ended the quarter with 1.511 million subs in North America, up 18% from a year earlier in Q1 2023. North American sub totals also exceeded its guidance for the quarter.
“Fubo’s first quarter 2024 performance builds upon the strong momentum achieved in the prior year, with double digit paid subscribers, total revenue and ad revenue growth in North America,” said David Gandler, co-founder and CEO, Fubo. “Our results further underscore continued solid execution on our long-term strategy. We continue to operate efficiently and effectively as we execute on our mission to delight consumers with an aggregated sports entertainment offering delivered through a personalized and intuitive streaming experience.”
Edgar Bronfman Jr., executive chairman, Fubo added that “over the past seven quarters, Fubo has consistently met or exceeded guidance and expanded ARPU in a challenging macro environment, all the while delivering a world-class viewing experience for consumers. We remain confident in our ability to build on this success while aggressively working to establish a more fair and equitable playing field for Fubo, other media industry participants and above all, consumers.”
In the Q1 report Fubo said that it again exceeded expectations in North America, closing the first quarter with double digit year-over-year (YoY) growth, delivering $394 million in total revenue, up 24% YoY. The Company also continued to improve YoY ad revenue growth, which increased 21% in the first quarter compared to prior year. Additionally, Fubo delivered $84.54 average revenue per user (ARPU), up 10% YoY.
In the Rest of World (ROW), the Company delivered 397,000 paid subscribers, up 5% YoY, and $8.4 million total revenue, up 7% YoY, during the quarter. ARPU reached $7, up 7% YoY. ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.
Financially, Fubo achieved 7% gross margin (globally), representing a YoY improvement of 588 basis points (bps). Its net loss from continuing operations in the first quarter was $56.3 million, leading to an earnings per share (EPS) loss of $0.19, which was an improvement in its net loss from continuing operations of $83.4 million, or an EPS loss of $0.37 in the first quarter of 2023. Adjusted EPS in the first quarter improved to a loss of $0.11, compared to an adjusted EPS loss of $0.27 in the first quarter of 2023.
Looking forward, the company said that in Q2 2024 it is projecting 1,275,000 to 1,295,000 subscribers in North America, representing 10% YoY growth at the midpoint, and $357.5 to $367.5 million total revenue, representing 19% YoY growth at the midpoint.
For all of 2024, Fubo is projecting 1,675,000 to 1,695,000 subscribers in North America representing 4% YoY growth at the midpoint, and $1.525 to $1.545 billion total revenue, representing 15% YoY growth at the midpoint.
But it stressed that the guidance does not reflect the impact that the new sports streaming joint venture backed by Disney, Fox and Warner Bros. Discovery might have on its business.
