fuboTV(US:FUBO)2023-05-05 14:45Financial Data and Key Metrics Changes - Total revenue for Q1 2023 increased by 34% year-over-year to $324.4 million, driven by 34% growth in North America and 41% growth from the Rest of World [36][42] - Paid subscribers reached 1.285 million, up 22% year-over-year, with Rest of World subscribers increasing by 24% to 379,000 [36][42] - The net loss for Q1 2023 was $83.4 million, a reduction of $45 million year-over-year, resulting in a net loss margin of negative 26% compared to negative 53% in the prior year [22][23] - Adjusted EBITDA loss improved to $58.9 million from $95.3 million in Q1 2022, with an adjusted EBITDA margin of minus 18.2%, an improvement from minus 39.3% [23][24] Business Line Data and Key Metrics Changes - North American ad sales revenue remained flat year-over-year at $22.5 million despite ongoing pressure in the advertising market [37][99] - The company reported an 8% increase in North America ARPU to $76.79 [99] - The Rest of World business, including the French streaming service Molotov, also posted double-digit growth in total revenue and paid subscribers during the quarter [36] Market Data and Key Metrics Changes - Strength was observed in financials, consumer packaged goods (CPG), travel, and competitive sectors, while weakness was noted in pharma, auto, and retail [8] - For Q2 2023, North America subscriber guidance is set at 1.12 million to 1.14 million, representing 19% year-over-year growth at the midpoint [45] - The Rest of World Q2 2023 guidance projects 377,500 to 382,560 subscribers, representing 10% year-over-year growth at the midpoint [46] Company Strategy and Development Direction - The company aims for positive cash flow by 2025, with a focus on subscriber growth, pricing optimization, and improving the mix of premium plans [2][18] - Fubo is enhancing its brand proposition by adding more sports content, positioning itself as a leader in professional baseball coverage [6] - The company is leveraging proprietary AI and computer vision technology to transform user engagement with streaming video and traditional DVR [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flow by 2025, supported by a strong cash position of $364.8 million [24][39] - The company noted a modest year-over-year increase in churn, which was up less than 100 basis points, indicating better retention than expected [50] - Management highlighted ongoing efforts to identify efficiencies and maximize leverage across operating expenses, with a focus on improving unit economics [43] Other Important Information - The company raised $117.2 million in net proceeds from its at-the-market program, with no further plans to sell under this program based on current outlook [39] - Fubo's customer satisfaction ranks number one among live TV streaming providers according to JD Power [19] - The company is focused on enhancing its advertising capabilities, with direct ad sales showing triple-digit year-over-year growth [75] Q&A Session Summary Question: What are the plans for long-term growth and new product launches? - Management emphasized the importance of a unified platform for scaling the business globally and reducing cash burn [66] Question: Can you discuss the status of RSNs and payment obligations? - Management stated that provisions exist in their deals that allow for reduced payments should certain events occur, ensuring financial flexibility [70] Question: What are the trends in connected TV advertising demand? - Management noted that while ad revenue was flat year-over-year, there is optimism for growth in the coming quarters, with improvements observed in March and April [71] Question: How is the company addressing advertising capabilities? - Management highlighted a focus on developing direct ad sales, with significant growth expected in the coming quarters [75][76] Question: What innovations are planned for the product? - Management discussed upcoming enhancements, including instant highlights and improved AI-driven recommendations for a better user experience [114]