NEW YORK—FuboTV Inc. has reported Q3 2023 financials that show the vMVPD boosted its sub count by 20% year-over-year to 1,477,000 and increased revenue by 43% versus Q3 2022.
Based on those results, which exceeded its guidance, the company also raised its full year 2023 guidance for North America.
“Fubo's strong third quarter exceeded guidance in North America, highlighted by an all-time high in paid subscribers as well as double digit year-over-year revenue growth,” said David Gandler, co-founder and CEO, Fubo. “As we progress toward our 2025 positive cash flow goal, we are confident that a return to content aggregation and bundling - which we long predicted - is now a reality. Fubo’s aim is to be a super aggregator, offering consumers premium content delivered through an intuitive and personalized streaming experience, at multiple price points, all in a single app.”
“Fubo’s third quarter marked continued improvements across our key performance metrics, including subscriber growth, gross margin, ARPU expansion and advertising revenue growth,” said Edgar Bronfman Jr., executive chairman, Fubo. “Looking ahead, as we raise full year 2023 guidance, we remain confident in the value proposition of our business model and believe we are well positioned to further benefit from industry trends, including the growing number of consumers subscribing to vMVPD services and the significant increase in CTV advertising.”
The Q3 earnings report showed that Fubo achieved double digit growth versus the prior year in North America, delivering $313 million total revenue (up 43% year-over-year) and a record 1.477 million paid subscribers (up 20% year-over-year), meaningfully exceeding third quarter 2023 guidance. The company also delivered $30.3 million in North America ad revenue during the quarter, an increase of 34% year-over-year.
In addition, Fubo expanded average revenue per user (ARPU) in North America by 17% year-over-year to a record $83.51 during the quarter.
In the Rest of World (ROW), Fubo delivered $8.4 million total revenue (up 45% year-over-year) and 411,000 paid subscribers (up 15% year-over-year). ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021, the company said.
The results also marked steady progress over the quarter toward the company’s goal of 2025 positive cash flow goal. The company achieved year-over-year improvement in net loss of $21 million and a $43 million improvement in net cash used in operating activities. Also during the quarter, Fubo achieved a $40 million improvement in free cash flow and a $21 million improvement in Adjusted EBITDA (AEBITDA). These improvements were a result of ongoing efforts to drive operating leverage across the business, and represent the third consecutive quarter of year-over-year improvements in these metrics.
Based on those results, management also said that the company maintained a strong balance sheet and healthy liquidity position, ending the quarter with $266 million in cash, cash equivalents and restricted cash, that the company believes will provide it with sufficient liquidity to fund its current operating plan and the momentum necessary to reach its 2025 positive cash flow goal.
Looking to full year 2023, Fubo is raising revenue and paid subscriber guidance in North America. The company now expects to close the year with $1.319 billion to $1.324 billion in total revenue, representing 34% year-over-year growth at the midpoint (from previously stated guidance of $1.260 billion to $1.280 billion), and 1.584 million to 1.599 million paid subscribers, representing 10% year-over-year growth at the midpoint (from prior guidance of 1.565 million to 1.585 million).
