FuboTV, the streaming platform, has reported a record high of 1.477 million paid subscribers in North America for the third quarter, surpassing the midpoint of its subscriber guidance of 1.337 million. This impressive growth can be attributed to the company’s “sports heavy” lineup, which includes college football, NFL seasons, and the second half of the MLB season. FuboTV has positioned itself as a leader in the virtual MVPD category, offering an aggregated and curated sports-centric offering with a user-friendly streaming experience.
The company’s North American revenue for the quarter reached $313 million, a 43% increase compared to the previous year and above the midpoint of the guidance of $275 million. Moreover, ad revenue in North America saw a growth of 34% year-over-year, amounting to $30.3 million. Average revenue per user in the region also experienced a significant increase, rising by 17% year-over-year and reaching a new high of $83.51.
FuboTV’s CEO and co-founder, David Gandler, sees a further opportunity for the company in the current landscape of content distribution. Following the Disney-Charter dispute, which resulted in some of Disney’s streaming services being offered as part of the pay TV bundle, Gandler believes there is a shift towards “super aggregation.” He envisions distribution platforms packaging content in different ways and delivering it to consumers at multiple price points. FuboTV, positioning itself as a “super aggregator,” is well-placed to benefit from this industry transformation.
During the Disney-Charter dispute, Charter urged its customers to sign up for FuboTV. Although this helped increase brand awareness for FuboTV, it did not significantly drive subscribers to the platform due to the short duration of the dispute and its resolution before the start of Monday Night Football.
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Outside of North America, FuboTV achieved $8.4 million in total revenue, a 45% increase from the previous year. It also gained 411,000 paid subscribers, demonstrating a 15% growth rate year-over-year. The company managed to improve its net loss, reducing it to $84.4 million from $105.8 million in the same quarter last year.
Despite these positive results, FuboTV is cautiously monitoring the impact of the Israel war. While it has not seen many cancellations directly related to the conflict, the company acknowledges that customers may be holding onto their money more tightly due to the uncertain circumstances. Nonetheless, FuboTV remains optimistic about its future prospects.
Based on its strong performance and expected trajectory, FuboTV has raised its full-year 2023 revenue and subscriber guidance in North America. The company now aims for revenue between $1.319 billion and $1.324 billion, up from the previous guidance range of $1.260 billion to $1.280 billion. Additionally, FuboTV forecasts 1.584 million to 1.599 million paid subscribers, surpassing the prior guidance of 1.565 million to 1.585 million.
Looking ahead, FuboTV is confident about achieving its goal of positive cash flow by 2025. With its growing subscriber base, robust revenue figures, and strategic positioning as a “super aggregator” in the streaming industry, FuboTV is poised for continued success in the market.
