COMPANY ACHIEVED FIRST-EVER QUARTER OF POSITIVE
FREE CASH FLOW IN Q4 2024
FuboTV Inc. (d/b/a/ Fubo) (NYSE: FUBO), the leading sports-first
live TV streaming platform, today announced its financial results
for the fourth quarter and full year ended December 31, 2024. The
Company closed the full year 2024 in North America with record
total revenue and paid subscribers, achieved its first quarter of
positive free cash flow and improved key profitability metrics by
over $100 million on an annual basis for the second consecutive
year.
Fubo delivered full year 2024 results in North America of $1.588
billion in total revenue, up 19% year-over-year (YoY), and 1.676
million subscribers, up 4% YoY, both record-breaking metrics for
the Company. Fubo closed the fourth quarter with $433.8 million in
total revenue, up 8% YoY, in North America, achieving its guidance.
Average revenue per user (ARPU) in the fourth quarter was $87.90 in
the region, an all-time high for the Company and an expansion of
1.4% YoY.
In the Rest of World (ROW), the Company delivered $9.4 million
total revenue, up 12.1% YoY, and 362,000 paid subscribers, down
10.9% YoY. ARPU reached $8.50, up 24.8% YoY. ROW includes the
results of Molotov, the French live TV streaming service acquired
by Fubo in December 2021.
Fubo states its key metrics on a YoY basis given the seasonality
of sports content.
Notably, on a full-year basis, Fubo achieved YoY improvements in
Net Loss of $115 million, Adjusted EBITDA of $115 million, Net cash
provided by operating activities of $97 million and Free Cash Flow
of $104 million. AEBITDA and Free Cash Flow each improved by over
$100 million in 2024. This marked the second consecutive year of
over $100 million annual improvements in AEBITDA and Free Cash
Flow.
Net Loss from continuing operations in the fourth quarter was
$40.9 million, leading to an earnings per share (EPS) loss of
$0.11. This compares favorably to a Net Loss from continuing
operations of $71 million, or an EPS loss of $0.24, in the fourth
quarter 2023. Adjusted EPS loss in the fourth quarter was $0.02,
compared to an adjusted EPS loss of $0.18 in the fourth quarter
2023. Adjusted EPS excludes the impact of stock-based compensation,
amortization of intangibles, impairment of other assets, gain on
extinguishment of debt and amortization of debt premium (discount),
net and certain litigation and transaction expenses.
In the fourth quarter, Adjusted EBITDA was -$8.7 million, a
$41.4 million improvement when compared to the fourth quarter 2023,
reflecting the Company’s continued focus on efficient growth, cost
control and achieving profitability.
Net cash provided by operating activities in the fourth quarter
was $20.9 million, a $20.9 million improvement compared to the
fourth quarter 2023, and Free Cash Flow in the fourth quarter was
$16.3 million, an improvement of $22.1 million compared to the
fourth quarter 2023.
Fubo ended the quarter with $167.6 million in cash, cash
equivalents and restricted cash on hand.
Guidance
North America
First Quarter 2025: Fubo is projecting $400 million to $410
million total revenue, representing 3% YoY growth at the midpoint,
and 1.430 million to 1.460 million total subscribers, representing
a 4% YoY decline at the midpoint. This outlook reflects the
potential subscriber impact of the Company’s recent non-renewal
with TelevisaUnivision. Fubo remains focused on providing its
subscribers with the most compelling content viewing options while
also advancing profitability objectives.
ROW
First Quarter 2025: Fubo is projecting $7.5 million to $8.5
million total revenue, representing a 5% YoY decline at the
midpoint, and 330,000 to 340,000 subscribers, representing a 16%
YoY decline at the midpoint.
Complete fourth quarter and full year 2024 results are detailed
in Fubo’s shareholder letter available on the Company’s IR
site.
“Fubo continued to deliver on our promise to shareholders in
2024, achieving record total revenue and paid subscribers in North
America, as well as significant improvements in Adjusted EBITDA and
Free Cash Flow,” said David Gandler, co-founder and CEO, Fubo.
“Notable achievements in 2024 included the launch of standalone
sports and entertainment skinny bundles as part of our mission to
be a Super Aggregator, and expanded availability of our
market-first user-configurated Multiview product to Roku devices.
We also introduced innovative and interactive connected TV ad
formats for brand marketers.
“As we look ahead to 2025, Fubo remains focused on delivering to
consumers an unparalleled streaming experience with multiple and
flexible content options at appropriate price points. This is
demonstrated by our recently announced business combination
agreement with The Walt Disney Company’s Hulu + Live TV and our
plans to launch a new Sports & Broadcasting service, both of
which we expect to further scale our business, deliver additional
compelling sports content to consumers and bring more competition
to the industry. We will continue to provide periodic updates as
the Disney transaction progresses.”
“2024 was another solid year for Fubo highlighted by record
achievements on the top and bottom lines, demonstrating further
progress towards our 2025 profitability goal,” said Edgar Bronfman
Jr., executive chairman, Fubo. “Record revenue and subscriber
growth in North America, as well as the achievement of more than a
$100 million improvement each in Adjusted EBITDA and Free Cash Flow
for the second consecutive year, are particular standouts of the
prior year. We enter 2025 with pride in our results, meaningful
improvements across nearly every aspect of our business and
excitement about our momentum.”
Live Webcast
Gandler and CFO John Janedis will host a live conference call
today at 8:30 a.m. ET to deliver brief remarks followed by Q&A.
The live webcast will be available on the Events &
Presentations page of Fubo’s investor relations website. An
archived replay will be available on Fubo’s website following the
call. Participants should join the call 10 minutes in advance to
ensure that they are connected prior to the event.
About Fubo
With a global mission to aggregate the best in TV, including
premium sports, news and entertainment content, through a single
app, FuboTV Inc. (d/b/a Fubo) (NYSE: FUBO) aims to transcend the
industry’s current TV model. The company operates Fubo in the U.S.,
Canada and Spain and Molotov in France.
In the U.S., Fubo is a sports-first cable TV replacement product
that aggregates more than 400 live sports, news and entertainment
networks and is the only live TV streaming platform with every
English-language Nielsen-rated sports channel (source: Nielsen
Total Viewers, 2024). Leveraging Fubo’s proprietary data and
technology platform optimized for live TV and sports viewership,
subscribers can engage with the content they are watching through
an intuitive and personalized streaming experience. Fubo has
continuously pushed the boundaries of live TV streaming. It was the
first virtual MVPD to launch 4K streaming and MultiView, which it
did years ahead of its peers, as well as Instant Headlines, a
first-of-its-kind AI feature that generates contextual news topics
as they are reported live on air.
Learn more at https://fubo.tv
Basis of Presentation – Continuing
Operations
In connection with the dissolution of Fubo Gaming, Inc. and
termination of Fubo Sportsbook, the assets and liabilities and the
operations of our former wagering reportable segment are presented
as discontinued operations in our consolidated financial
statements. With respect to our continuing operations, we operate
as a single reportable segment. Financial information presented in
this release reflects Fubo’s results on a continuing operations
basis, which excludes our former wagering reportable segment.
Key Performance Metrics and Non-GAAP
Measures
Paid Subscribers We believe the number of paid
subscribers is a relevant measure to gauge the size of our user
base. Paid subscribers (“subscribers”) are total subscribers that
have completed registration with Fubo, have activated a payment
method (only reflects one paying user per plan), from which Fubo
has collected payment in the month ending the relevant period.
Users who are on a free (trial) period are not included in this
metric.
Average Revenue per User (ARPU) We believe ARPU provides
useful information for investors to gauge the revenue generated per
subscriber on a monthly basis. ARPU, with respect to a given
period, is defined as total Subscription revenue and Advertising
revenue recognized in such period, divided by the average daily
paid subscribers in such period, divided by the number of months in
such period. Advertising revenue, like Subscription revenue, is
primarily driven by the number of subscribers to our platform and
per-subscriber viewership such as the type of, and duration of,
content watched on platform. We believe ARPU is an important metric
for both management and investors to evaluate the Company’s core
operating performance and measure our subscriber monetization, as
well as evaluate unit economics, payback on subscriber acquisition
cost and lifetime value per subscriber. In addition, we believe
that presenting a geographic breakdown for North America ARPU and
ROW ARPU allows for a more meaningful assessment of the business
because of the significant differences in both Subscription revenue
and Advertising revenue generated on a per subscriber basis in
North America when compared to ROW due to our current subscription
pricing models and advertising monetization in the two geographic
regions.
Adjusted EBITDA Adjusted EBITDA is a non-GAAP measure
defined as Net Loss from Continuing Operations, adjusted for
depreciation and amortization, impairment of other assets,
stock-based compensation, certain litigation and transaction
expenses, income tax (provision) benefit, and other income
(expense). Certain litigation expenses consist of legal expenses
and related fees and costs for specific proceedings that we have
determined arise outside of the ordinary course of business and do
not consider representative of our underlying operating
performance, based on the several considerations which we assess
regularly, including: (1) the frequency of similar cases that have
been brought to date, or are expected to be brought in the future;
(2) matter-specific facts and circumstances, such as the unique
nature or complexity of the case and/or remedy(ies) sought,
including the size of any monetary damages sought; (3) the
counterparty involved; and (4) the extent to which management
considers these amounts for purposes of operating decision-making
and in assessing operating performance. Certain transaction
expenses consist of professional advisor costs related to the
pending business combination with Hulu + Live TV.
Adjusted EBITDA Margin Adjusted EBITDA Margin is a
non-GAAP measure defined as Adjusted EBITDA divided by Revenue.
Adjusted EPS (Earnings per Share) Adjusted EPS is a
non-GAAP measure defined as Adjusted Net Loss divided by weighted
average shares outstanding.
Adjusted Net Loss Adjusted Net Loss is a non-GAAP measure
defined as Net Loss Attributable to Common Shareholders, adjusting
for discontinued operations, stock-based compensation, amortization
of debt premium (discount), net, amortization of intangible assets,
impairment of other assets, gain on extinguishment of debt and
certain litigation and transaction expenses (as described further
above, see “Adjusted EBITDA”).
Free Cash Flow Free Cash Flow is a non-GAAP measure
defined as net cash used in operating activities - continuing
operations, reduced by capital expenditures (consisting of
purchases of property and equipment), purchases of intangible
assets and capitalization of internal use software. We believe Free
Cash Flow is an important liquidity measure of the cash that is
available for operational expenses, investments in our business,
strategic acquisitions, and for certain other activities such as
repaying debt obligations and stock repurchases. Free Cash Flow is
a key financial indicator used by management. Free Cash Flow is
useful to investors as a liquidity measure because it measures our
ability to generate or use cash. The use of Free Cash Flow as an
analytical tool has limitations due to the fact that it does not
represent the residual cash flow available for discretionary
expenditures. Because of these limitations, Free Cash Flow should
be considered along with other operating and financial performance
measures presented in accordance with GAAP.
Reconciliation of Key Performance
Metrics and Non-GAAP Financial Measures Certain measures
used in this release, including Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Net Loss, Adjusted EPS and Free Cash Flow, are
non-GAAP financial measures. We believe these are useful financial
measures for investors as they are supplemental measures used by
management in evaluating our core operating performance. Our
non-GAAP financial measures have limitations as analytical tools
and you should not consider them in isolation or as a substitute
for an analysis of our results under GAAP. There are a number of
limitations related to the use of these non-GAAP financial measures
versus their nearest GAAP equivalents. First, these non-GAAP
financial measures are not a substitute for GAAP financial
measures. Second, these non-GAAP financial measures may not provide
information directly comparable to measures provided by other
companies in our industry, as those other companies may calculate
their non-GAAP financial measures differently.
The following tables include reconciliations of the non-GAAP
financial measures used in this press release to their most
directly comparable GAAP financial measures. The tables also
include reconciliations of GAAP Subscription revenue and GAAP
Advertising revenue to North America ARPU and ROW ARPU,
respectively, each of which is a key performance metric.
fuboTV Inc.
Reconciliation of GAAP Subscription and
Advertising Revenue to North America ARPU
(in thousands, except average
subscribers and average per user amounts)
Year-over-Year Comparison
Three Months Ended
December 31, 2024
December 31, 2023
Subscription Revenue (GAAP)
$ 406,876
$ 370,087
Advertising Revenue (GAAP)
34,392
38,987
Subtract:
ROW Subscription Revenue
(8,971)
(8,042)
ROW Advertising Revenue
(475)
(382)
Total
431,822
400,650
Divide:
Average Subscribers (North America)
1,637,487
1,541,290
Months in Period
3
3
North America Monthly Average Revenue
per User (NA ARPU)
$ 87.90
$ 86.65
fuboTV Inc.
Reconciliation of Net Loss from
Continuing Operations to Non-GAAP Adjusted EBITDA
(in thousands)
Year-over-Year Comparison
Three Months Ended
December 31, 2024
December 31, 2023
Reconciliation of Net Loss from
Continuing Operations to Adjusted EBITDA
Net loss from continuing
operations
$ (40,932)
$ (71,042)
Depreciation and amortization
9,952
9,638
Impairment of other assets
3,813
-
Stock-based compensation
9,901
11,764
Certain litigation expenses(1)
3,397
555
Certain transaction expenses(2)
2,639
-
Other (income) expense
2,279
(654)
Income tax provision (benefit)
252
(397)
Adjusted EBITDA
(8,699)
(50,136)
Adjusted EBITDA
(8,699)
(50,136)
Divide:
Revenue
443,277
410,181
Adjusted EBITDA Margin
-2.0%
-12.2%
fuboTV Inc.
Reconciliation of Net Loss from
Continuing Operations to Non-GAAP Adjusted EBITDA (TTM)
(in thousands)
Year-over-Year Comparison
Trailing Twelve Months
Ended
December 31, 2024
December 31, 2023
Reconciliation of Net Loss from
Continuing Operations to Adjusted EBITDA
Net loss from continuing
operations
$ (177,778)
$ (293,102)
Depreciation and amortization
38,548
36,496
Impairment of other assets
3,813
-
Stock-based compensation
42,510
51,215
Certain litigation expenses(1)
22,441
631
Certain transaction expenses(2)
2,639
-
Other (income) expense
(18,902)
4,631
Income tax provision (benefit)
659
(879)
Adjusted EBITDA (TTM)
(86,070)
(201,008)
fuboTV Inc.
Reconciliation of Net Cash Provided by
(Used in) Operating Activities - Continuing Operations to Free Cash
Flow
(in thousands)
Year-over-Year Comparison
Three Months Ended
December 31, 2024
December 31, 2023
Net cash provided by (used in)
operating activities - continuing operations
$ 20,850
$ (57)
Subtract:
Purchases of property and equipment
(828)
(696)
Capitalization of internal use
software
(2,655)
(4,407)
Purchase of intangible assets
(1,100)
(693)
Free Cash Flow
16,267
(5,853)
fuboTV Inc.
Reconciliation of Net Cash Provided by
(Used in) Operating Activities - Continuing Operations to Free Cash
Flow (TTM)
(in thousands)
Year-over-Year Comparison
Trailing Twelve Months
Ended
December 31, 2024
December 31, 2023
Net cash provided by (used in)
operating activities - continuing operations
$ (75,627)
$ (173,045)
Subtract:
Purchases of property and equipment
(2,727)
(1,071)
Capitalization of internal use
software
(11,468)
(17,282)
Purchase of intangible assets
(1,640)
(3,592)
Free Cash Flow (TTM)
(91,462)
(194,990)
fuboTV Inc.
Reconciliation of Net Loss Attributable
to Common Shareholders to Non-GAAP Adjusted Net Loss and Adjusted
EPS
(in thousands)
Year-over-Year Comparison
Three Months Ended
December 31, 2024
December 31, 2023
Net loss attributable to common
shareholders
$ (38,549)
$ (70,090)
Subtract:
Net income from discontinued operations,
net of tax
-
515
Net loss from continuing operations
attributable to common shareholders
(38,549)
(70,605)
Net loss from continuing operations
attributable to common shareholders
(38,549)
(70,605)
Stock-based compensation
9,901
11,764
Amortization of debt (premium) discount,
net
(355)
656
Amortization of intangibles
9,606
9,282
Impairment of other assets
3,813
-
Gain on extinguishment of debt
-
(1,607)
Certain litigation expenses(1)
3,397
555
Certain transaction expenses(2)
2,639
-
Adjusted net loss from continuing
operations
(9,548)
(49,955)
Weighted average shares outstanding:
Basic and diluted
336,151,610
294,737,521
Adjusted EPS from continuing
operations
$ (0.02)
$ (0.18)
(1)
Certain litigation expenses consist of
legal expenses and related fees for specific proceedings that we
have determined arise outside of the ordinary course of business
and do not consider representative of our underlying operating
performance. For the periods presented, the adjustment included
expenses attributable to antitrust and data privacy litigation.
Note that in calculating AEBITDA and Adjusted EPS, prior to the
second quarter of 2024 Fubo did not include adjustments for Certain
litigation expenses. For comparative purposes, prior quarter
figures have been recast to reflect this adjustment.
(2)
Certain transaction expenses consist of
professional advisor costs related to the pending business
combination with Hulu + Live TV.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking statements of FuboTV
Inc. (“Fubo”) that involve substantial risks and uncertainties. All
statements contained in this press release that do not relate to
matters of historical fact are forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995, including statements regarding our business strategy and
plans, our offerings, including our planned Sports &
Broadcasting service, our pending business combination with Hulu +
Live TV (the “Transactions”), industry trends, our financial
condition and our anticipated financial performance, including
quarterly guidance. The words “could,” “will,” “plan,” “intend,”
“anticipate,” “approximate,” “expect,” “potential,” “believe” or
the negative of these terms or other similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain these identifying words. Actual
results or events could differ materially from the plans,
intentions and expectations disclosed in the forward-looking
statements that Fubo makes due to a number of important factors,
including but not limited to the following: our ability to achieve
or maintain profitability; risks related to our access to capital
and fundraising prospects to fund our financial operations and
support our planned business growth; our revenue and gross profit
are subject to seasonality; our operating results may fluctuate;
our ability to effectively manage our growth; risks related to the
Transactions; the long-term nature of our content commitments; our
ability to renew our long-term content contracts on sufficiently
favorable terms; our ability to attract and retain subscribers;
obligations imposed on us through our agreements with certain
distribution partners; we may not be able to license streaming
content or other rights on acceptable terms; the restrictions
imposed by content providers on our distribution and marketing of
our products and services; our reliance on third party platforms to
operate certain aspects of our business; risks related to the
difficulty in measuring key metrics related to our business; risks
related to preparing and forecasting our financial results; risks
related to the highly competitive nature of our industry; risks
related to our technology, as well as cybersecurity and data
privacy-related risks; risks related to ongoing or future legal
proceedings; and other risks, including the effects of industry,
market, economic, political or regulatory conditions, future
exchange and interest rates, and changes in tax and other laws,
regulations, rates and policies. Further risks that could cause
actual results to differ materially from those matters expressed in
or implied by such forward-looking statements are discussed in our
Quarterly Report on Form 10-Q for the quarterly period ended
September 30, 2024 filed with the Securities and Exchange
Commission (“SEC”), our Annual Report on Form 10-K for the year
ended December 31, 2024 to be filed with the SEC, and our other
periodic filings with the SEC. We encourage you to read such risks
in detail. The forward-looking statements in this press release
represent Fubo’s views as of the date of this press release. Fubo
anticipates that subsequent events and developments will cause its
views to change. However, while it may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. You should,
therefore, not rely on these forward-looking statements as
representing Fubo’s views as of any date subsequent to the date of
this press release.
Additional Information and Where to
Find It
This press release and the information contained herein shall
not constitute an offer to buy or sell or the solicitation of an
offer to buy or sell any securities or a solicitation of any proxy,
vote or approval, nor shall there be any issuance or sale of
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. The Transactions will
be submitted to the shareholders of Fubo for their consideration
and approval at a special meeting. In connection with the
Transactions, Fubo intends to file a preliminary proxy statement
with the SEC. Once the SEC completes its review of the preliminary
proxy statement, a definitive proxy statement and a form of proxy
will be filed with the SEC and mailed or otherwise furnished to the
shareholders of Fubo. Before making any voting decision, Fubo
shareholders are urged to read the proxy statement in its entirety,
when it becomes available, and any other documents to be filed with
the SEC in connection with the Transactions or incorporated by
reference in the proxy statement (including any amendments or
supplements to these documents), if any, because they will contain
important information about the Transactions and the parties to the
Transactions. This communication is not a substitute for the proxy
statement or any other document that may be filed by Fubo with the
SEC or sent to its shareholders in connection with the
Transactions.
Fubo investors and shareholders may obtain a free copy of the
proxy statement and documents filed by Fubo with the SEC at the
SEC’s website at www.sec.gov. In addition, Fubo investors and
shareholders may obtain a free copy of Fubo’s filings with the SEC
from Fubo’s website at ir.fubo.tv or by directing a request by mail
to Fubo, 1290 Avenue of the Americas, New York, NY 10104, or
telephone to (212) 672-0055.
Participants in the
Solicitation
The Company and its directors and executive officers and other
members of management and employees may, under the rules of the
SEC, be deemed to be participants in the solicitation of proxies
from the shareholders of the Company in respect of the
Transactions. Information regarding Fubo’s directors and executive
officers is contained in the definitive proxy statement on Schedule
14A for Fubo’s 2024 annual meeting of shareholders (the “2024 Proxy
Statement”), filed with the SEC on April 26, 2024. Additional
information regarding the persons who are, under the rules of the
SEC, participants in the solicitation of the shareholders of Fubo
in connection with the Transactions, including a description of
their direct or indirect interests, by security holdings or
otherwise, will be set forth in the proxy statement for Fubo’s
special meeting of shareholders in connection with the Transactions
when it is filed with the SEC, free copies of which may be obtained
as described in the preceding paragraph. To the extent holdings of
Fubo’s securities by Fubo’s directors and executive officers change
from the amounts set forth in the 2024 Proxy Statement, such
changes have been or will be reflected on Statements of Changes of
Beneficial Ownership of Securities on Form 4 filed with the SEC.
Fubo investors and shareholders may obtain free copies of these
filings from the SEC’s website at www.sec.gov or from Fubo’s
website at ir.fubo.tv.
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Investor Contacts
Ameet Padte, Fubo ameet@fubo.tv
JCIR for Fubo ir@fubo.tv
Media Contacts
Jennifer L. Press, Fubo jpress@fubo.tv
Bianca Illion, Fubo billion@fubo.tv
fuboTV (NYSE:FUBO)
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