Core Viewpoint - The investment case for FuboTV is weakening as the company faces significant challenges in subscriber retention and marketability, leading to a decline in stock value following its fiscal first-quarter results [1][9]. Financial Performance - FuboTV reported a revenue increase of 3.5% to $416.3 million, slightly exceeding estimates [2]. - The per-share loss improved to $0.02 from a loss of $0.14 in the same quarter last year, which was better than analysts' expectations [2]. Subscriber Trends - North America's paid subscribers decreased from 1.676 million at the end of 2024 to 1.47 million, a year-over-year decline of 2.7% [3]. - The "Rest of World" subscriber count fell from 362,000 to 354,000, representing an 11% decrease [3]. - The company anticipates further declines, projecting fewer than 1.3 million North American customers and no more than 335,000 international subscribers by the end of Q2 [5]. Market Challenges - The merger with Hulu, which will be 70% owned by Disney, is not expected to resolve the fundamental issues both services face regarding declining interest in cable-like services [6][7]. - Hulu+Live has also shown stagnant growth, raising doubts about the effectiveness of the merger in enhancing marketability [8]. Investor Sentiment - The recent performance and subscriber losses have led to increased investor concerns about FuboTV's long-term viability and marketability [5][9].

Core Insights - fuboTV Inc. reported revenue of $416.29 million for Q1 2025, a year-over-year increase of 3.5% and a surprise of +0.42% over the Zacks Consensus Estimate of $414.53 million [1] - The company posted an EPS of -$0.02, improving from -$0.11 a year ago, with a surprise of +50.00% compared to the consensus estimate of -$0.04 [1] Revenue and Earnings Performance - Subscription revenues reached $391.43 million, exceeding the five-analyst average estimate of $386.93 million, reflecting a year-over-year change of +4.7% [4] - Advertising revenues were reported at $22.88 million, falling short of the five-analyst average estimate of $26.58 million, representing a year-over-year decline of -16.7% [4] Subscriber Metrics - Paid subscribers in North America totaled 1,470,000, surpassing the three-analyst average estimate of 1,435,667 [4] - Paid subscribers in the Rest of World streaming segment reached 354,000, exceeding the average estimate of 334,000 based on three analysts [4] - North America Monthly Average Revenue per User (NA ARPU) was $85.37, slightly below the $86.61 average estimate from two analysts [4] Stock Performance - fuboTV shares have returned -3% over the past month, compared to a -0.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Performance - FuboTV Inc. reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.04, and an improvement from a loss of $0.11 per share a year ago, representing an earnings surprise of 50% [1] - The company posted revenues of $416.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.42%, and showing an increase from year-ago revenues of $402.35 million [2] - FuboTV has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Stock Performance - FuboTV shares have increased approximately 132.5% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.01 on revenues of $392.8 million, and for the current fiscal year, it is -$0.09 on revenues of $1.67 billion [7] Industry Outlook - The Broadcast Radio and Television industry, to which FuboTV belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact FuboTV's stock performance [5][6]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported 1,470,000 paid subscribers in North America, a decrease of 2.7% year over year, but exceeding the guidance of 1,460,000 [6][7] - Total revenue in North America was $407.9 million, reflecting a year-over-year increase of 3.5% [7] - Net income from continuing operations was $188 million, or $0.55 per diluted share, compared to a net loss of $56.3 million and a loss per share of $0.19 in the prior year [12] - Adjusted EBITDA was negative $1.4 million, showing a $37 million improvement year over year [12] - Free cash flow improved by $9 million year over year to negative $62 million [13] Business Line Data and Key Metrics Changes - Advertising revenue for the quarter was $22.5 million, down 17% year over year, primarily due to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks [11] - The company is focused on offering multiple packaging options, including skinny bundles, to meet consumer demand [9][10] Market Data and Key Metrics Changes - The company anticipates a decline in subscribers for Q2 2025, projecting North America subscribers to be between 1,225,000 and 1,255,000, a 14% year-over-year decline at the midpoint [13][14] - For the Rest of World segment, Q2 guidance projects subscribers of 325,000 to 335,000, down 17% year over year [14] Company Strategy and Development Direction - The company is committed to achieving profitability in 2025 and is focused on optimizing its aggregated content platform [11][15] - The pending business combination with Hulu plus Live TV is expected to enhance competition and consumer choice in the pay TV space [8][10] - The company aims to launch a new service featuring content from both Disney and non-Disney programmers by the fall sports season [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty and evolving streaming landscape [6][8] - The focus remains on profitability over growth, particularly in international markets [32][34] Other Important Information - The company has made significant investments in technology and strategic content changes, resulting in improved profitability and cash flow [14][15] - The company is exploring the integration of GenAI tools for creative and advertising purposes [30] Q&A Session Summary Question: Update on content discussions with Televisa Univision and skinny package programming contracts - Management indicated no new updates on discussions with Televisa Univision but remains open to negotiations under acceptable terms [18][19] - The company is focused on releasing skinny bundles and is optimistic about growth opportunities for the fall [21][22] Question: Impact of macroeconomic factors on subscriber growth and advertising demand - Management noted that churn in the Latino package is ongoing, but overall churn for the English package is slightly better year over year [26][27] - April was the best month for advertising growth year to date, indicating a positive trend [28] Question: Concerns about the Rest of World segment and GenAI integration - Management emphasized the importance of profitability for the Rest of World segment and is preparing for international expansion [32][34] - The company is seeing good traction with interactive ads, which are up 30% year over year [40][41] Question: Clarification on advertising revenue decline due to lost networks - Management explained that losing ad-insertable hours from networks directly impacts ad revenue, but normalizing for that would show slight year-over-year growth [36]

Financial Data and Key Metrics Changes - In Q1 2025, Fubo's North American streaming business had 1,470,000 paid subscribers, down 2.7% year over year, but exceeding the guidance of 1,460,000 [6][7] - Total revenue in North America was $407.9 million, up 3.5% year over year [7] - Net income from continuing operations was $188 million or $0.55 per diluted share, compared to a net loss of $56.3 million and a loss per share of $0.19 in the prior year [12] - Adjusted EBITDA was negative $1.4 million, a $37 million improvement year over year [12] - Free cash flow improved by $9 million year over year to negative $62 million [13] Business Line Data and Key Metrics Changes - Advertising revenue for the quarter was $22.5 million, down 17% year over year, largely due to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks [11] - The company is focused on providing multiple and flexible packaging options, including skinny bundles [9][10] Market Data and Key Metrics Changes - For Q2 2025, North America guidance projects subscribers of 1,225,000 to 1,255,000, reflecting a 14% year over year decline at the midpoint [13] - For the Rest of World segment, Q2 guidance projects subscribers of 325,000 to 335,000, down 17% year over year [14] Company Strategy and Development Direction - The company is committed to achieving profitability in 2025 and is focused on optimizing its aggregated content platform [11][15] - Fubo is working on a combination with Hulu plus Live TV, which is expected to enhance competition and consumer choice in the pay TV space [8][10] - The company aims to launch a new skinny bundle service for the fall sports season, featuring content from both Disney and non-Disney programmers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the subscriber growth opportunities with the introduction of skinny bundles and the ongoing negotiations for content [21][22] - The company noted that the impact of losing certain content providers would continue into the second quarter but expected the impact on subscriber base to be more modest over time [20] - Management highlighted that profitability remains the focus, even amidst challenges in the media landscape [11][15] Other Important Information - The company has improved its global profitability metrics by more than $100 million for the trailing twelve months [8] - The company is seeing solid interest in its Latino package after lowering its price [19] Q&A Session Summary Question: Update on content discussions with Televisa Univision - Management stated there are no new updates but remains open to discussions under acceptable terms [18] Question: Impact of macroeconomic conditions on subscriber growth and advertising - Management indicated that churn for the English package is slightly better year over year, and reactivations were better than expected in April [27] Question: Concerns about the Rest of World segment and its future - Management emphasized the importance of profitability over growth and is focused on building a unified platform for international expansion [32][34] Question: Explanation for the decline in advertising revenue - Management clarified that the loss of ad-insertable hours from certain networks directly impacted ad revenue, but normalized figures would show slight growth [36] Question: Performance of gamified ads and advertiser interest - Management reported a 30% year-over-year increase in interactive ads and noted strong interest from advertisers despite tightening budgets [40][42]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenue of $407.9 million in North America, reflecting a year-over-year increase of 3.5% [6][11] - Net income from continuing operations was $188 million, translating to $0.55 per diluted share, compared to a net loss of $56.3 million and a loss per share of $0.19 in the prior year [12] - Adjusted EBITDA improved by $37 million year-over-year, reaching negative $1.4 million, indicating effective cost control and operational efficiency [12][13] Business Line Data and Key Metrics Changes - The North American streaming business had 1,470,000 paid subscribers, down 2.7% year-over-year but exceeding the Q1 guidance of 1,460,000 [6][11] - Advertising revenue for the quarter was $22.5 million, down 17% year-over-year, primarily due to the discontinuation of Warner Bros. Discovery and TelevisaUnivision Networks [11][12] Market Data and Key Metrics Changes - The company anticipates a decline in subscribers for Q2 2025, projecting 1,225,000 to 1,255,000 subscribers, which represents a 14% year-over-year decline at the midpoint [13][14] - For the Rest of World segment, Q2 guidance projects subscribers of 325,000 to 335,000, down 17% year-over-year, with revenue expected to decline by 15% at the midpoint [14] Company Strategy and Development Direction - The company is focused on achieving profitability in 2025 while continuing to enhance its content offerings and flexible packaging options [7][10] - The pending business combination with Hulu plus Live TV is seen as a strategic move to increase competition and consumer choice in the pay TV space [7][14] - The company is committed to negotiating content licensing agreements at fair rates and terms to support its skinny bundle offerings [10][22] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate economic uncertainties and the evolving streaming landscape [6][7] - The company noted that while subscriber growth is expected to be modest, reactivations were better than anticipated in April, indicating resilience in customer demand [26] - Management emphasized the importance of profitability over growth, particularly in international markets, and is preparing for future expansion [31][33] Other Important Information - The company has made significant investments in technology and strategic content changes, resulting in improved profitability and cash flow [14] - The company is focused on interactive and gamified advertising formats, which have shown a year-over-year increase in traction [40][41] Q&A Session Summary Question: Update on content discussions with Televisa Univision - Management indicated no new updates but remains open to discussions under acceptable terms, while also noting a reduction in the price of the Latino package [18][19] Question: Impact of macroeconomic conditions on subscriber growth and advertising - Management reported that churn rates are in line with expectations and that April showed better-than-expected reactivations, with advertising growth improving [24][26] Question: Concerns about the Rest of World segment and GenAI integration - Management reiterated the focus on profitability for the Rest of World segment and highlighted the importance of technology and marketing investments for future growth [31][33] Question: Explanation for the decline in advertising revenue - Management clarified that the loss of ad-insertable hours from certain networks directly impacted ad revenue, but normalized figures would show slight year-over-year growth [35][36] Question: Performance of gamified ads and advertiser interest - Management reported a 30% year-over-year increase in interactive ads and noted strong interest from advertisers despite tightening budgets [40][41]

Financial Performance - Fubo ended Q1 2025 with 1.47 million North America subscribers and revenue of $407.9 million, exceeding guidance for revenue [3]. - Net income for Q1 2025 was $188.5 million, a significant improvement from a net loss of $56.3 million in Q1 2024, with EPS of $0.55 [11]. - Adjusted EBITDA for Q1 2025 was -$1.4 million, reflecting a $37.4 million improvement year-over-year [12]. - Free Cash Flow in Q1 2025 was -$62 million, an improvement of $9.3 million compared to Q1 2024 [15]. - Total revenues for Q1 2025 reached $416.3 million, a 3.4% increase from $402.3 million in Q1 2024 [40]. - Subscription revenue increased to $391.4 million, up 4.3% from $373.7 million year-over-year [40]. - Operating loss improved to $25.4 million in Q1 2025, compared to a loss of $63.3 million in Q1 2024 [40]. - Cash and cash equivalents increased to $321.6 million as of March 31, 2025, compared to $161.4 million at the end of 2024 [42]. - Total assets grew to $1.22 billion, up from $1.08 billion at the end of 2024 [42]. - Shareholders' equity increased to $389.0 million, compared to $180.8 million at the end of 2024 [42]. - The company reported a gain on settlement of litigation amounting to $219.7 million in Q1 2025 [40]. - Basic net income per share for continuing operations was $0.55, compared to a loss of $0.19 in Q1 2024 [40]. - For the three months ended March 31, 2025, fuboTV reported a net income from continuing operations of $188,488 thousand, compared to a net loss of $56,329 thousand in the same period of 2024 [43]. - The company generated $161,402 thousand in net cash provided by operating activities from continuing operations, a significant improvement from the net cash used of $67,046 thousand in the prior year [43]. - The average revenue per user (ARPU) for North America was $85.37 for the three months ended March 31, 2025, compared to $84.54 in the same period of 2024 [54]. - The total number of paid subscribers was approximately 1,585,130 for the three months ended March 31, 2025, reflecting growth in the user base [45]. - Net income from continuing operations for the three months ended March 31, 2025, was $188,488, compared to a loss of $56,329 for the same period in 2024 [56]. Revenue and Guidance - North America ad revenue for Q1 2025 was $22.5 million, representing a 17.3% decline year-over-year [17]. - Subscriber guidance for Q2 2025 projects 1,225,000 to 1,255,000 in North America, indicating a 14% year-over-year decline at the midpoint [24]. - Revenue guidance for Q2 2025 in North America is projected at $340 million to $350 million, representing a 10% year-over-year decline at the midpoint [24]. - Subscription revenue for the three months ended March 31, 2025, was $391,432 thousand, while advertising revenue was $22,881 thousand [54]. Strategic Initiatives - Fubo renewed its exclusive multi-year rights agreement with the English Premier League in Canada, enhancing its content offerings [19]. - New features such as personalized game alerts and live game scores are being introduced to optimize the sports streaming experience [20][21]. - The company aims to achieve profitability in 2025 for its global streaming business, focusing on innovative streaming experiences and customer value [6]. - FuboTV is pursuing a business combination with Hulu + Live TV, which is expected to enhance its market position and growth potential [35]. - The company is focused on strategic acquisitions and market expansion as part of its growth strategy moving forward [44]. - The company is in the process of a business combination with Hulu + Live TV, incurring certain transaction expenses related to this pending deal [57]. Cash Flow and Expenses - Free cash flow for the period was calculated as net cash provided by operating activities from continuing operations minus capital expenditures, indicating liquidity available for operational expenses and investments [51]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(1,420), improving from $(38,818) in the same period of 2024, with an adjusted EBITDA margin of -0.3% [56]. - Free Cash Flow for the three months ended March 31, 2025, was $(61,994), a decline from $16,267 in the same period of 2024 [60]. - Net cash provided by operating activities for the trailing twelve months ended March 31, 2025, was $152,821, compared to $(163,052) for the same period in 2024 [61]. - Adjusted net loss from continuing operations for the three months ended March 31, 2025, was $(7,914), compared to $(41,518) in the same period of 2024 [62]. - The company reported certain litigation expenses of $7,050 for the three months ended March 31, 2025, compared to $2,257 in the same period of 2024 [62]. - Stock-based compensation for the three months ended March 31, 2025, was $3,464, down from $12,977 in the same period of 2024 [62]. - The weighted average shares outstanding for basic shares increased to 341,059,213 for the three months ended March 31, 2025, from 299,363,298 in the same period of 2024 [62].

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Is fuboTV Inc. (FUBO) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.fuboTV Inc. is a member of our Consumer Discretionary group, which includes 257 different companies and currently sits at #10 in the Zacks Sector Rank. The Zac ...

Core Viewpoint - FuboTV is transitioning from a struggling independent streaming service to a larger entity through its merger with Hulu, which is expected to significantly increase its subscriber base and financial backing, but raises concerns about its operational independence and profitability in the future [1][5][10] Group 1: FuboTV's Current Status - FuboTV has built a loyal subscriber base of less than 1.7 million customers and has shown steady revenue growth over the past five years, despite not achieving consistent profitability [2][4] - The company ended 2024 with approximately $160 million in cash, down from about $245 million the previous year, indicating financial strain [6] Group 2: Merger with Hulu - The merger with Hulu, announced at the start of 2025, is expected to increase FuboTV's subscriber count to around 6.2 million and comes with a capital infusion of approximately $220 million [5][6] - Disney will own 70% of FuboTV's stock post-merger and will have the right to appoint a majority of the board of directors, leading to concerns about FuboTV's operational independence [7][8] Group 3: Future Implications - FuboTV may continue to operate at a loss due to high content carriage fees paid to Disney, which could limit its financial viability despite the merger [9][10] - The merger could result in FuboTV being controlled by Disney, raising questions about its ability to make independent business decisions and achieve profitability [8][10]

Core Viewpoint - The entertainment sector is led by Netflix, which has a market cap exceeding $400 billion, significantly higher than its closest competitor, Walt Disney, at $152 billion. However, other companies like FuboTV may present long-term investment opportunities [1]. Group 1: FuboTV Overview - FuboTV is recognized for streaming live sporting events and has recently partnered with Disney, gaining control over Hulu+ Live TV and adding ESPN content, while Disney acquires 70% ownership in Fubo [3]. - FuboTV ended 2024 with approximately 1.7 million subscribers in North America, marking a 4% year-over-year increase, and generated record-high revenue of $1.62 billion, a 19% year-over-year increase [4]. - Despite revenue growth, FuboTV reported a net loss of $176.1 million in 2024, although this was an improvement from a net loss of $287.9 million in 2023 [5]. Group 2: Netflix Overview - Netflix reported a strong first-quarter earnings growth of 13% year-over-year, reaching $10.5 billion in revenue and a net income of $2.9 billion, up from $2.3 billion the previous year [6]. - In 2024, Netflix achieved $39 billion in sales, a 16% year-over-year increase, with net income rising to $8.7 billion, a 61% increase over 2023 [7]. - The company anticipates revenue of at least $43.5 billion in 2025, continuing its trend of double-digit growth [9]. Group 3: Investment Comparison - FuboTV's price-to-sales (P/S) ratio is below 1, indicating that investors are paying less than $1 for every $1 of revenue, suggesting the stock is undervalued [10][12]. - In contrast, Netflix's P/S ratio has increased over time, indicating a higher valuation, but FuboTV's low valuation is attributed to its high subscriber-related costs, which accounted for 84% of its 2024 sales [12][14]. - Netflix's cost of revenue was 54% of total sales in 2024, reflecting a more favorable economic position compared to FuboTV [14].