fuboTV(FUBO)2024-11-01 20:17Revenue and Subscriber Growth - Fubo's subscription revenue is primarily generated through its website and third-party app stores, offering basic plans with optional add-ons and features[163][175] - Fubo's revenue and subscriber additions peak in Q3 and Q4, driven by the start of the NFL and college football seasons[173] - Total revenues for Q3 2024 increased to 65.3 million (20.4%) compared to Q3 2023, driven by a 356.6 million, up by 23.1% YoY, with 16.5 million from higher subscription prices and attachments[189] - North America paid subscribers increased to 1.6 million as of September 30, 2024, compared to 1.5 million in 2023, while ROW paid subscribers remained stable at 0.4 million[209] - North America ARPU increased to 83.51 in Q3 2023, while ROW ARPU rose to 6.98 during the same period[211] - Subscription Revenue (GAAP) for Q3 2024 was 289.6 million in Q3 2023, while Advertising Revenue (GAAP) decreased to 30.6 million[214] Advertising Revenue and Competition - Fubo's advertising revenue is derived from fees charged for displaying ads within streamed content, competing with traditional media and other streaming platforms[171][177] - The company faces significant competition, including from Disney, Fox, and WBD's proposed sports streaming service, which could impact subscriber growth and profitability[168] - The company operates in a highly competitive environment, with aggressive promotions by competitors potentially affecting its value proposition[167] - Advertising revenue for Q3 2024 decreased by 27.1 million due to fewer impressions sold[189] Operating Expenses and Costs - Subscriber-related expenses, primarily content streaming costs, represent the largest component of the company's operating expenses[172][178] - Subscriber-related expenses for Q3 2024 increased by 317.7 million, primarily due to higher affiliate distribution costs and subscriber growth[191] - Broadcasting and transmission expenses for Q3 2024 decreased by 14.4 million, driven by cloud infrastructure optimization[193] - Sales and marketing expenses for Q3 2024 decreased by 55.2 million, mainly due to reduced marketing and stock-based compensation costs[195] - Technology and development expenses for Q3 2024 increased by 21.2 million, primarily due to higher payroll costs[196] - General and administrative expenses for Q3 2024 increased by 26.5 million, driven by higher legal fees and payroll expenses[197] Financial Performance and Profitability - Gross Profit for Q3 2024 was 19.7 million in Q3 2023, with Gross Margin improving to 14.0% from 6.1%[213] - Net loss from continuing operations for Q3 2024 improved to 84.5 million in Q3 2023, reflecting better operational performance[187] - Other income for Q3 2024 was 5.6 million improvement YoY, primarily due to a 46.9 million principal amount of the 2026 Convertible Notes for 43.3 million during the nine months ended September 30, 2024[220] - As of September 30, 2024, the company had 96.5 million during the nine months ended September 30, 2024, compared to 11.3 million during the nine months ended September 30, 2024, compared to 11.5 million for the nine months ended September 30, 2024, compared to 2.8 million for the nine months ended September 30, 2024, compared to 152.3 million in cash, cash equivalents, and restricted cash, with 144.8 million of 2026 Convertible Notes and $177.5 million of 2029 Convertible Notes[241] Content and Business Model Risks - The company's ability to acquire and retain desirable content at competitive prices is critical, with increasing content costs posing a risk to margins[172] - Fubo's business model depends on growing ad inventory and shifting advertising dollars from traditional TV to connected TV, which may be impacted by macroeconomic conditions[171] - Fubo relies on paid marketing channels (e.g., social media, search advertising) to grow its brand and attract new subscribers, with potential risks if these channels become less efficient[166] Discontinued Operations and Impairment - The company ceased operations of its Fubo Sportsbook on October 17, 2022, with results reported as discontinued operations[164][165] - The company conducted a goodwill impairment test as of March 31, 2024, due to sustained decreases in stock price and market capitalization, and determined that goodwill was not impaired[234] - The March 31, 2024 goodwill impairment test allocated 50% to income-based and 50% to market-based approaches, with significant inputs including a control premium of 20.0%, a discount rate of 31.5%, and revenue multiples of 0.4x to 0.5x[236] Currency and International Revenue - Revenues denominated in currencies other than the U.S. dollar accounted for approximately 2.3% of consolidated revenues for the three and nine months ended September 30, 2024[242]