fuboTV(US:FUBO)2024-03-01 18:19Financial Data and Key Metrics Changes - FuboTV reported a record 1.62 million paid subscribers, a 12% year-over-year increase, and total revenue of $402 million, up 29% year-over-year [20] - Average revenue per user (ARPU) reached an all-time high of $86.65, a 15% increase year-over-year [5] - The company improved free cash flow by $101 million and adjusted EBITDA by $122 million compared to the prior year [5][21] - The net loss for Q4 was $71 million, a reduction of $25 million year-over-year, resulting in a net loss margin improvement to negative 17% from negative 30% [12][53] Business Line Data and Key Metrics Changes - North America revenue grew by 29% in Q4, while revenue from the rest of the world increased by 18% [11] - Advertising revenue totaled $39 million in Q4, reflecting a 15% increase compared to the prior year [28] Market Data and Key Metrics Changes - The company anticipates full-year 2024 North America subscribers to be between 1.665 million and 1.685 million, representing 4% year-over-year growth at the midpoint [13] - For the full-year 2024, revenue is projected to be between $1.505 billion and $1.525 billion, indicating a 13% year-over-year growth at the midpoint [13] Company Strategy and Development Direction - FuboTV aims to become a super aggregator, offering various video bundles tailored to consumer preferences, including free, FAST, AVOD, pay-per-view, and TVOD options [9][25] - The company plans to launch a free content tier to retain and monetize consumers who do not convert into paying users [25] - FuboTV is focused on executing its operating plan despite challenges in the competitive landscape, emphasizing a sports-centric entertainment service [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability targets by 2025, citing a healthy balance sheet and operational efficiencies [5][29] - The company filed an antitrust lawsuit against major competitors, asserting that their practices are anti-competitive and detrimental to FuboTV's business [22][23] - Management believes that even without favorable market conditions, the company can continue to operate effectively and maintain growth [66] Other Important Information - The gross margin expanded by nearly 900 basis points to 10%, marking the fifth consecutive quarter of positive gross margin [12] - The company ended the quarter with $251 million in cash and cash equivalents, indicating ample liquidity for future investments [29] Q&A Session Summary Question: Can you comment on subscription churn from Q4 into Q1? - Management indicated that churn has been relatively stable year-over-year, with seasonality affecting quarterly comparisons [45] Question: What happens if the lawsuit goes against you? - Management stated that losing the lawsuit would not change the business fundamentally, as they would still face unreasonable pricing and terms [84] Question: How do you see the advertising trends for Q1? - Management noted that they expect double-digit growth in advertising revenue for Q1, with strong demand observed in various categories [64] Question: What is the impact of the new joint venture on your path to profitability? - Management affirmed that the joint venture would not change their path to profitability, citing strong performance in recent quarters [92]