fuboTV(FUBO) - 2023 Q1 - Quarterly Report

Revenue Performance - Total revenues for the three months ended March 31, 2023, were $324.4 million, an increase of$82.1 million (33.9%) compared to $242.3 million for the same period in 2022[187]. - Subscription revenue increased by$81.7 million, driven by a $59.2 million increase in the subscriber base and a$22.5 million increase from subscription package prices and attachments sold[187]. - Advertising revenue decreased by $0.4 million, primarily due to a decrease in the number of impressions sold, partially offset by an increase in Cost Per Thousands (CPMs)[187]. Subscriber Metrics - As of March 31, 2023, the company had 1.3 million paid subscribers in North America, an increase from 1.1 million in the same period of 2022, and 0.4 million paid subscribers in the Rest of World, up from 0.3 million[199]. - The Average Revenue Per User (ARPU) for North America was$76.79 for the three months ended March 31, 2023, compared to $71.43 in the same period of 2022, representing an increase of 4.0$301.4 million, an increase of $55.7 million (22.7$245.7 million in the prior year, mainly due to higher affiliate distribution rights and other distribution costs[188]. - General and administrative expenses decreased significantly to $14.7 million, down$12.0 million (45.0%) from $26.7 million in the same quarter of 2022[192]. - The operating loss for the three months ended March 31, 2023, was$81.5 million, an improvement from a loss of $122.9 million in the same period of 2022[184]. - Net loss from continuing operations was$83.4 million, compared to a net loss of $128.4 million for the same period in 2022[184]. Discontinued Operations - The company ceased operations of its Fubo Sportsbook on October 17, 2022, with results reported as discontinued operations[161]. - The loss from discontinued operations was$0.3 million for the three months ended March 31, 2023, significantly lower than the $12.5 million loss reported in the same period of 2022, related to the terminated wagering business[196]. Financial Position - Net cash used in operating activities for the three months ended March 31, 2023, was$77.0 million, an improvement from $119.2 million in the same period of 2022[215]. - As of March 31, 2023, the company had cash, cash equivalents, and restricted cash totaling$364.8 million[227]. - The company had outstanding indebtedness of $410.1 million as of March 31, 2023, which included$402.5 million of convertible notes[227]. - The company raised approximately $106.1 million in net proceeds from the sale of common stock during the three months ended March 31, 2023, under the ATM Program[210]. Future Outlook - The company expects to continue as a going concern for at least the next twelve months based on existing cash and cash equivalents[213]. - The company continues to focus on growing its paid subscriber base, optimizing content portfolio, and increasing monetization strategies[162]. - The company does not anticipate any material impact on long-term development timelines or liquidity due to macroeconomic factors, although ongoing assessments are being conducted[214]. Accounting and Financial Reporting - The company has not made any material changes to its critical accounting policies and estimates from those disclosed in the previous annual report[224]. - The preparation of financial statements requires estimates and assumptions that affect reported amounts of assets, liabilities, revenues, and expenses[223]. - There were no off-balance sheet arrangements as of March 31, 2023[222]. Currency and Interest Rate Impact - Revenues denominated in currencies other than the U.S. dollar accounted for approximately 2.4% of the consolidated amount for the three months ended March 31, 2023[228]. - A hypothetical 10% change in interest rates would not have resulted in a material impact on the company's consolidated financial statements as of March 31, 2023[227]. - A hypothetical 10% weakening of the euro relative to the U.S. dollar would not materially affect the company's revenue and operating income as of March 31, 2023[228]. - The company does not enter into investments for trading or speculative purposes and has not used any derivative financial instruments to manage interest rate risk exposure[227].