NEW YORK—Despite the threat of competing against a new sports streaming offering that Disney, Fox and Warner Bros. Discovery plan to launch in the fall of 2024, Fubo TV is predicting relatively healthy growth in its revenue and subscribers for 2024.
After beating subscriber and revenue forecasts for 2023, with 1.618 million subs, an all-time high at the end of 2023, Fubo TV said that its fiscal year 2024 subscriber guidance projects 1,665,000 to 1,685,000 subscribers, representing 4% year-over-year growth and that its FY 2024 revenue guidance projects $1,505 to $1,525 million, representing 13% year-over-year growth at the midpoint.
“Our projection of revenue growth meaningfully outpacing subscriber growth reflects our continued expectation of ARPU expansion as the result of improved unit economics and margin gains,” noted David Gandler, co-founder and CEO Edgar Bronfman Jr., executive chairman in a letter to shareholders.
For North America in Q1, 2024, the company is projecting 1,415,000 to 1,435,000 subscribers, representing 11% year-over-year growth at the midpoint and its Q1 2024 revenue guidance projects $365 to $375 million, representing 17% year-over-year growth at the midpoint.
For the rest of the world, the company is predicting 390,000 to 410,000 subscribers, representing a -2% year-over-year decline at the midpoint. The FY 2024 revenue guidance projects $31 to $35 million, representing 2% year-over-year growth at the midpoint.
“The fourth quarter capped a great year for Fubo, as we again exceeded guidance across key financial and operational metrics,” said David Gandler, co-founder and CEO, Fubo. “Our strong results in North America included 12% year-over-year growth in subscribers, 29% year-over-year revenue growth and a record $86.65 average revenue per user (ARPU). The quarter also marked a healthy year-over-year improvement in profitability and cash usage, reflecting the success of our continuing initiatives focused on adding efficiency across our operations. We remain confident in achieving our 2025 positive cash flow goal.”
Gandler continued: “The results for the fourth quarter and full year 2023 demonstrate that Fubo continues to execute on our long-term strategy and that we are well positioned to capitalize on our aggregated and curated sports-centric entertainment offering, leveraging the evolving trends across the media and consumer landscape. These results are especially impressive given the years-long challenges Fubo has faced as a result of what we believe have been anticompetitive practices by The Walt Disney Company, Fox Corp. and Warner Bros. Discovery. As evident in the antitrust lawsuit we filed against these parties last month, their proposed sports streaming joint venture is only the latest example of the pernicious practices they have inflicted to suppress our business and harm consumers. We are asking for an opportunity to compete fairly as a business, and to offer consumers a streaming option that gives them the channels they want, and at a fair price. Going forward, despite these challenges, consumers should still expect a compelling sports-centric entertainment offering, and investors should expect Fubo to continue to execute well against our stated business objectives.”
More on the lawsuit is available here.
