fuboTV(FUBO)2024-08-06 14:44Financial Data and Key Metrics - North America revenue grew 26% YoY to 25.8 million [6] - Global revenue grew 25% YoY to 25.8 million from 19.6 million YoY to negative 40.5 million YoY [17] Business Line Data and Key Metrics - The company launched the fubo Free tier, offering nearly 200 free ad-supported streaming television (FAST) channels, with early results being encouraging [12] - The company plans to expand its tiered offering with standalone content, including SVOD, pay-per-view, TVOD, and skinny bundles [13] Market Data and Key Metrics - North America subscriber guidance for Q3 is 1.605 million to 1.625 million, representing 9% YoY growth at the midpoint [19] - Full-year 2024 North America subscriber guidance is 1.725 million to 1.745 million, representing 7% YoY growth at the midpoint [19] - Rest of the world subscriber guidance for Q3 is 397,000 to 402,000, representing a 3% YoY decline at the midpoint [20] Company Strategy and Industry Competition - The company is focused on delivering value and expanding its relevancy to consumers in a fast-changing environment, with a vision to offer users premium content within the fubo ecosystem [11][12] - The company is fighting for competition and better prices in a market in disruption, contrasting with the Walt Disney Company, Fox Corporation, and Warner Brothers Discovery [8][9] - The company is encouraged by earlier reports that the Department of Justice is looking into the sports streaming joint venture (JV) and the increasing number of high-profile Capitol Hill lawmakers, public interest groups, and other content distributors weighing in on the negative impact the JV would have for consumers [10] Management Commentary on Operating Environment and Future Outlook - The company remains focused on bringing consumers an aggregated sports entertainment offering that delivers premium content and innovative product features at the right price point [13] - The company is committed to a competitive streaming landscape that offers consumers choice, fair pricing, and innovation [13] - The company is confident in its ability to execute with all teams operating at the highest levels and is dedicated to upholding rigor and discipline in managing company-wide costs [6][17] Other Important Information - The company repurchased 161.3 million of cash, cash equivalents, and restricted cash, confident that its liquidity will be adequate to invest in the business under its current operating plan [18] Q&A Session Question: Update on cost per thousand and the ad market [22] - Ad revenue growth was 14% YoY, with strength in CPMs in the sports marketplace and some pressure in the entertainment front [22][23] Question: Advertising performance and subscription retention around the Olympics [24] - Top five ad categories outperformed the overall portfolio, with strength in auto, e-comm, financial services, food, and beverage [25] - Subscribers from short-term events like the Olympics tend to have less retentive value, and the marketing team does not aggressively pursue them [25] Question: Details on the Free service and its impact on subscriber performance [27] - The Free service is early in its rollout, with encouraging early results and increasing ad growth, but it is too soon to determine its impact on retention [28][29] - The company is focused on reactivating churned customers and may expand the Free service to other cohorts in the future [30] Question: Drivers of net ads in North America [31] - Sporting events and better-than-expected churn drove subscriber growth, with SAC coming in below target [31] - The company saw strong sports calendar performance, including major soccer events and cricket championship marketing [32] Question: Impact of connected TV options on TAM [34] - The FAST business is complementary, with 7% of viewership coming from FAST within the paid service [36] - The company views connected TV options as potential business development partners rather than direct competitors [36] Question: Retention efforts after sporting events and capital expectations [38] - Retention efforts focus on delivering a good viewer experience, with the Free service available to churned customers to reengage them [39] - The company is funded to execute on its operating plan, excluding the potential impact of the JV, and is sensitive to shareholder dilution [41] Question: Marketing approach and pricing power [43] - The company has raised prices by $5 this year, with retention in line to better than expected, indicating some remaining pricing power [44] - Marketing adjustments for the third quarter will be shared in the next earnings call [45] Question: Sequential improvement in subscriber-related expenses [47] - Subscriber-related expenses improved due to a combination of factors, including content negotiations and mix-shift opportunities, not just the removal of Warner Brothers content [47][48]