Fubotv Inc. ((FUBO)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for fuboTV Inc. was a mix of optimism and caution. The company celebrated significant achievements in revenue growth and profitability, alongside strategic partnerships, such as the combination with Hulu + Live TV. However, challenges such as declining ad revenue, the nonrenewal with Univision, and a projected decline in subscribers for the upcoming quarter were also highlighted, presenting notable concerns for the future.
Record Year for Revenue and Subscriber Growth
fuboTV Inc. reported an impressive year in terms of revenue and subscriber growth. The company achieved double-digit revenue growth in North America, reaching nearly $1.6 billion, which is a 19% increase year over year. Additionally, paid subscribers in the region grew to 1,676,000, marking a 4% increase compared to the previous year.
Improved Profitability Metrics
The company has shown significant improvements in its profitability metrics. For the second consecutive year, fuboTV Inc. improved its full-year adjusted EBITDA and free cash flow by over $100 million. The net loss for Q4 was reduced to $40.9 million from $71 million in Q4 2023, indicating a positive trend in financial health.
First Quarter of Positive Free Cash Flow
A notable milestone for fuboTV Inc. was the achievement of positive free cash flow for the first time, amounting to $16.3 million in Q4 2024. This reflects the company’s commitment to financial discipline and effective cost management strategies.
FuboTV and Hulu + Live TV Combination
In a strategic move, fuboTV Inc. announced a definitive agreement with the Walt Disney Company to combine Hulu + Live TV. This combination positions fuboTV as the sixth largest player in the pay TV space by subscribers, potentially enhancing its market presence and competitive edge.
Decline in Global Ad Revenue
Despite the positive revenue growth, fuboTV faced a decline in global ad revenue, which fell by 11.8% year over year. This decline was primarily attributed to a decrease in ad-insertable content following adjustments to the content portfolio in 2024.
Challenges with Univision Nonrenewal
The nonrenewal of the agreement with Univision posed a challenge for fuboTV. The decision was made due to significant rate increases, leading to a 55% reduction in the Latino plan price and an anticipated impact on subscriber numbers.
Subscriber Guidance Indicating Decline
Looking ahead, fuboTV’s guidance for Q1 2025 indicates a projected decline in North America subscribers, with numbers expected to range between 1,430,000 and 1,460,000. This represents a 4% year-over-year decline at the midpoint, partially reflecting the impact of the Univision nonrenewal.
Forward-Looking Guidance
In terms of forward-looking guidance, fuboTV Inc. remains optimistic about its revenue prospects, projecting North America revenue between $400 million and $410 million for Q1 2025. The company plans to enhance consumer choice with new bundles and is set to launch a sports and broadcasting service for the fall sports season, independent of its pending business combination with Hulu + Live TV.
In summary, fuboTV Inc.’s earnings call presented a balanced view of achievements and challenges. While the company celebrated significant revenue growth and strategic partnerships, it also acknowledged hurdles such as declining ad revenue and subscriber projections. Moving forward, fuboTV’s strategic initiatives and financial discipline will be crucial in navigating these challenges and sustaining growth.