Shares of FuboTV (NYSE: FUBO) plunged over 16% in midday trading Friday after the sports-first live TV streaming platform reported fourth-quarter revenue that missed analyst expectations. The company posted $443.277 million in revenue for Q4 2024, up 8.1% from a year ago but below the $445.8 million analysts had expected.
Despite the revenue miss, FuboTV delivered a smaller-than-expected loss. Its adjusted earnings per share (EPS) came in at a 2-cent loss, beating the consensus estimate of an 18-cent loss. The company also narrowed its adjusted EBITDA margin loss to (2.0)%, a big improvement from (12.2)% a year ago.
NORTH AMERICA AND BEYOND: MIXED RESULTS
In North America, FuboTV (NYSE: FUBO) reported revenue of $433.8 million, up 8% from a year earlier. The jump was driven by a 6.2% rise in paid subscribers to 1.64 million. Average revenue per user (ARPU) jumped 1.4% to $87.90.
Meanwhile, in the rest of the world (ROW), revenue grew 12.1% to $9.4 million, with ARPU jumping 24.8% to $8.50. However, ROW subscribers dropped 10.9% to 362,000.
CASH POSITION AND FREE CASH FLOW IMPROVE
As of December 31, 2024, FuboTV held $167.6 million in cash and equivalents. The company also reported a positive free cash flow of $16.3 million in the fourth quarter, marking an improvement of $22.1 million compared to the same quarter in 2023.
CEO HIGHLIGHTS MILESTONES, DISNEY DEAL
Co-founder and CEO David Gandler highlighted several key accomplishments from 2024. These included the standalone sports and entertainment skinny bundles launch, the rollout of Multiview products to Roku devices, and the introduction of innovative, interactive connected TV ad formats aimed at brand marketers. Gandler also emphasized a business combination agreement with The Walt Disney Company’s (NYSE: DIS) Hulu + Live TV and plans to launch a new Sports & Broadcasting service.
FIRST-QUARTER GUIDANCE DISAPPOINTS
For Q1 2025, FuboTV (NYSE: FUBO) expects North American revenue to range between $400 million and $410 million, well below the consensus estimate of $440.24 million. ROW revenue is expected to range from $7.5 million to $8.5 million.
The company forecasts total subscribers to decline to between 1.43 million and 1.46 million, a 4% drop year-over-year at the midpoint. This outlook reflects the potential impact of FuboTV’s recent non-renewal of its agreement with TelevisaUnivision. ROW subscribers are expected to fall to between 330,000 and 340,000, representing a 16% year-over-year decline at the midpoint.
FuboTV (NYSE: FUBO) stock had climbed 73% over the past 12 months, buoyed by a strong track record of beating revenue and EPS estimates in seven of the last eight quarters.
