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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): November 3, 2023

 

 

FUBOTV INC.

(Exact name of registrant as specified in its charter)

 

 

Florida		001-39590		26-4330545
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

 

1290 Avenue of the Americas

New York, NY 10104

(Address of principal executive offices) (Zip Code)

 

(212) 672-0055

(Registrant’s telephone number, including area code)

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.0001 per share		FUBO		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On November 3, 2023, fuboTV Inc. announced its financial results for the three months ended September 30, 2023. The full text of the shareholder letter and press release issued in connection with the announcement are attached as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K.

 

The information in this Item 2.02, including the information contained in Exhibits 99.1 and 99.2 of this Current Report on Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

The following exhibits relating to Item 2.02 shall be deemed to be furnished, and not filed:

 

Exhibit No.		Description
99.1		Letter to Shareholders, dated November 3, 2023.
99.2		Press Release of fuboTV Inc., dated November 3, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	FUBOTV INC.
Date: November 3, 2023	By:	/s/ David Gandler
		David Gandler
		Chief Executive Officer

 

 

 

Exhibit 99.1

 

 

November 3, 2023

 

Fellow Shareholders:

 

Fubo’s results for the third quarter exceeded guidance, including 20% year-over-year growth in subscribers and 43% year-over-year revenue growth in North America (NA). The results for the quarter also marked a healthy year-over-year improvement in cash usage, reflecting the continued success of our initiatives focused on unit economics and cost discipline. We maintained a strong balance sheet, ending the quarter with $266 million in cash, cash equivalents and restricted cash. Looking ahead, we believe that we have both sufficient liquidity to fund our current operating plan and the momentum necessary in our business to achieve our positive cash flow goal in 2025. Accordingly, we are raising our full year 2023 revenue and subscriber guidance in NA.

 

Importantly, we believe our results reflect the growing appeal of our aggregated and curated sports-centric offering, the discoverability and navigability of our platform and our compelling value proposition. We also believe Fubo can differentiate and lead the virtual MVPD category through our intuitive and personalized streaming experience as demonstrated by the ongoing launches of our new apps globally.

 

Q3 2023 Highlights¹:

 

●	Posted Q3 NA subscribers of 1.477 million, an all-time high and well ahead of the midpoint of our Q3 NA subscriber guidance of 1.337 million.
●	Grew NA Revenue to $313 million, representing 43% growth over the prior year period and surpassing the midpoint of our guidance of $275 million.

	○	NA Subscription revenue growth of 43% year-over-year.
	○	NA Advertising revenue growth of 34% year-over-year.

●	Achieved Gross Margin of 6%, a 884 bps year-over-year improvement.
●	Expanded NA ARPU by 17% year-over-year to $83.51, representing an all-time record.
●	Drove a 619 bps reduction in Subscriber-related expenses (SRE) as a percentage of revenue to 89%, reflecting significant progress in optimizing content costs.
●	Achieved year-over-year improvement in Net Loss of $21 million and a $43 million improvement in net cash used in operating activities.
●	Continued to make considerable progress towards our goal of positive cash flow and Adjusted EBITDA (AEBITDA) in 2025, with a Q3 AEBITDA improvement of $21 million and a Q3 Free Cash Flow improvement of $40 million, compared to Q3 2022.

 

¹ Except as otherwise indicated, financial information presented in this letter reflects Fubo’s results on a continuing operations basis, which excludes our former wagering reportable segment. See “Basis of Presentation – Continuing Operations” below.

 

 

Note: Except as otherwise indicated, financial information presented and discussed in this letter reflects Fubo’s results on a continuing operations basis, which excludes our former wagering reportable segment. See “Basis of Presentation – Continuing Operations” below for further detail.

 

Q3 2023 Results and Q4 Guidance²

 

Summary Financials (millions) (GLOBAL)		3Q22				3Q23				3Q23 YoY %
Revenue		$	225.0			$	320.9				+43	%
Total Operating Expenses		$	328.6			$	404.2				+23	%
Net Loss		$	-105.8			$	-84.4				-20	%
Net Loss Margin			-47.0	%			-26.3	%			+2,070 bps
Adjusted EBITDA		$	-83.0			$	-61.5				-26	%
Adjusted EBITDA Margin			-36.9	%			-19.2	%			+1,772 bps

 

Key Operating Metrics (NORTH AMERICA STREAMING)		3Q22				3Q23				3Q23 YoY %
Subscribers (thousands)			1,231				1,477				+20	%
Revenue ($ in millions)		$	219.2			$	312.5				+43	%
ARPU		$	71.51			$	83.51				+17	%

 

Key Operating Metrics (REST OF WORLD STREAMING)		3Q22				3Q23				3Q23 YoY %
Subscribers (thousands)			358				411				+15	%
Revenue ($ in millions)		$	5.8			$	8.4				+45	%
ARPU		$	5.47			$	6.98				+28	%

 

Guidance (NA)		4Q23				FY23
Revenue ($ in millions)		$	385-$390			$	1,319-$1,324
Subscribers (thousands)			1,584-1,599				1,584-1,599

 

Guidance (ROW)		4Q23				FY23
Revenue ($ in millions)		$	7.6-$8.6			$	32-$33
Subscribers (thousands)			388-393				388-393

 

²Our consolidated Net Loss for 3Q23 was $84.8 million, which includes $0.4 million loss from discontinued operations. Net Loss from continuing operations was $84.4 million.

 

 

Net Loss from continuing operations in the third quarter was $84.4 million, leading to an earnings per share (EPS) loss of $0.29. This compares favorably to a Net Loss from continuing operations of $105.8 million and an EPS loss of $0.57 in the third quarter of 2022. Adjusted EPS in the third quarter of 2023 improved to a loss of $0.22, compared to an adjusted EPS loss of $0.46 in Q3 2022. Adjusted EPS excludes the impact of stock-based compensation, amortization of intangibles, amortization of debt discount and other non-cash items.

 

In Q3 2023 we achieved a $40 million improvement in Free Cash Flow and a $21 million improvement in AEBITDA, when compared to Q3 2022. These improvements were a result of our ongoing efforts to drive operating leverage across the business, and represent the third consecutive quarter of year-over-year improvements in these metrics.

 

We maintained a strong balance sheet and healthy liquidity position, ending the quarter with $266.1 million in cash, cash equivalents and restricted cash. We believe that we have sufficient liquidity to fund our current operating plan as we progress towards our stated profitability goals.

 

 

Q3 2023 Operational Highlights

 

North America Ad Sales

 

Fubo delivered North America ad revenue of $30.3 million in the quarter, an increase of 34% year-over-year, reflecting the appeal of our highly sought-after audience and premium sports-first content. The performance in the quarter also underscores the positive impact of our improved go-to market strategies that focus on top holding companies and the packaging of our content and audience around key tentpoles and seasonal events to drive premium CPMs.

 

 

During the quarter, the team closed upfront deals with major brands including General Motors, Walmart and Post Foods, among others.

 

North America Content

 

The back half of the year features a heavy sports calendar, including the return of the college football and NFL seasons as well as the second half of the MLB season. We believe Fubo’s dominance in local sports and strong coverage of national networks positions us well for sustained growth.

 

We continue to gain added leverage over our subscriber related expenses (SRE), which decreased from 95% to 89% of revenue in Q3 versus the same prior year period. This is the fourth consecutive quarter we have decreased our SRE as a percentage of revenue and we expect this year-over-year trend to continue as we grow subscribers, optimize our pricing and further improve our mix of premium plans.

 

Product Roadmap

 

The third quarter was highlighted by the beginning stages of our global Unified Platform (UP) rollout. Under our UP initiative, every Fubo application is being re-built and re-designed to leverage technology synergies across our global platform. We enacted a phased rollout during the quarter to test progress and we have been pleased with the results so far. This new technical architecture is already allowing us to rapidly iterate our product experience while also laying the foundation for additional platform level enhancements. We expect to deliver an increasingly personalized Fubo experience incorporating AI as we focus on our technology advantage in creating must-have product features.

 

Guidance

 

North America Streaming

 

We are raising our prior FY 2023 revenue and subscriber guidance.

 

For FY 2023 we are projecting 1.584 million to 1.599 million subscribers (vs. prior guidance of 1.565 to 1.585 million), representing 10% year-over-year growth at the midpoint, and revenue of $1.319 billion to $1.324 billion (vs. prior guidance of $1.260 billion to $1.280 billion), representing 34% year-over-year growth at the midpoint.

 

For Q4 2023 we are projecting revenue of $385.0 million to $390.0 million, representing 24% year-over-year growth at the midpoint.

 

ROW Streaming

 

Our updated FY 2023 guidance projects 387,500 to 392,500 subscribers, representing a 7% year-over-year decline at the midpoint, and revenue of $32.0 million to $33.0 million, representing 33% year-over-year growth at the midpoint.

 

For Q4 2023 we are projecting revenue of $7.6 million to $8.6 million, representing 13% year-over-year growth at the midpoint.

 

 

Conclusion

 

The third quarter marked continued improvements across our key performance metrics, including subscriber growth, gross margin improvement, ARPU expansion and advertising revenue growth. We believe these results underscore the positive impact of the initiatives we are undertaking and the investments we are making in the business. Looking ahead as we progress toward our 2025 positive cash flow goal, we remain confident in the value proposition of our business model – the aggregation of premium content, delivered through an intuitive and personalized streaming experience, all in a single app. We believe we are well positioned to further benefit from industry trends, including the growing number of consumers subscribing to vMVPD services and the significant increase in CTV advertising.

 

We look forward to keeping you updated on our progress in the quarters to come.

 

Sincerely,

 

David Gandler, co-founder and CEO

Edgar Bronfman Jr., executive chairman

 

Q3 2023 Earnings Live Conference Call

 

Fubo CEO David Gandler and CFO John Janedis will host a live conference call today at 8:30 a.m. ET to deliver brief remarks followed by Q&A. The live webcast will be available on the Events & Presentations page of Fubo’s investor relations website. An archived replay will be available on Fubo’s website following the call. Participants should join the call 10 minutes prior to ensure that they are connected prior to the event.

 

More Information

 

We encourage you to read our full set of financial statements and SEC filings, and to sign up for email alerts, on the investor relations section of our website at ir.fubo.tv.

 

Additional information is available at www.sec.gov under FuboTV Inc.’s filings, as well as https://ir.fubo.tv.

 

Fubo intends to use its website as a disclosure channel and investors are encouraged to refer to it, as well as press releases and SEC filings. The company encourages reading the full set of financial statements and related disclosures in its Annual Report on Form 10-K for the year ended December 31, 2022 that has been filed with the SEC.

 

About Fubo

 

With a global mission to aggregate the best in TV, including premium sports, news and entertainment content, through a single app, FuboTV Inc. (d/b/a Fubo) (NYSE: FUBO) aims to transcend the industry’s current TV model. The company operates Fubo in the U.S., Canada and Spain and Molotov in France.

 

In the U.S., Fubo is a sports-first cable TV replacement product that aggregates more than 300 live sports, news and entertainment networks and is the only live TV streaming platform with every Nielsen-rated sports channel (source: Nielsen Total Viewers, 2022). Leveraging Fubo’s proprietary data and technology platform optimized for live TV and sports viewership, subscribers can engage with the content they are watching through an intuitive and personalized streaming experience. Fubo has continuously pushed the boundaries of live TV streaming. It was the first virtual MVPD to launch 4K streaming and MultiView, which it did years ahead of its peers.

 

 

Learn more at https://fubo.tv

 

Forward-Looking Statements

 

This letter contains forward-looking statements of FuboTV Inc. (“Fubo”) that involve substantial risks and uncertainties. All statements contained in this letter that do not relate to matters of historical fact are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including statements regarding our business strategy and plans, including content partnerships, market opportunity, expectations regarding innovation, growth, profitability and becoming cash flow positive in 2025, industry, advertising and consumer trends, planned product offerings, our anticipated cash requirements, our financial condition and our anticipated financial performance, including quarterly and annual guidance, and cash flow and Adjusted EBITDA targets. The words “could,” “will,” “plan,” “intend,” “anticipate,” “approximate,” “expect,” “potential,” “believe” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that Fubo makes due to a number of important factors, including but not limited to the following: our ability to achieve or maintain profitability; risks related to our access to capital and fundraising prospects to fund our financial operations and support our planned business growth; our revenue and gross profit are subject to seasonality; our operating results may fluctuate; our ability to effectively manage our growth; the long-term nature of our content commitments; our ability to renew our long-term content contracts on sufficiently favorable terms; our ability to attract and retain subscribers; obligations imposed on us through our agreements with certain distribution partners; we may not be able to license streaming content or other rights on acceptable terms; the restrictions imposed by content providers on our distribution and marketing of our products and services; our reliance on third party platforms to operate certain aspects of our business; risks related to our reporting obligations; risks related to the difficulty in measuring key metrics related to our business; risks related to preparing and forecasting our financial results; risks related to the highly competitive nature of our industry; risks related to our technology, as well as cybersecurity and data privacy-related risks; risks related to ongoing or future legal proceedings; and other risks, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies. Further risks that could cause actual results to differ materially from those matters expressed in or implied by such forward-looking statements are discussed in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023 filed with the Securities and Exchange Commission (“SEC”), our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 to be filed with the SEC, and our other periodic filings with the SEC. We encourage you to read such risks in detail. The forward-looking statements in this letter represent Fubo’s views as of the date of this letter. Fubo anticipates that subsequent events and developments will cause its views to change. However, while it may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. You should, therefore, not rely on these forward-looking statements as representing Fubo’s views as of any date subsequent to the date of this letter.

 

(FuboTV Inc. Financial Statements begin on the following pages)

 

 

fuboTV Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

 

		For the Three Months Ended
		September 30,
		2023				2022
		Unaudited				Unaudited
Revenues
Subscription		$	289,623			$	201,911
Advertising			30,592				22,714
Other			720				364
Total revenues			320,935				224,989
Operating expenses
Subscriber related expenses			286,068				214,466
Broadcasting and transmission			15,187				16,608
Sales and marketing			60,494				55,288
Technology and development			17,506				17,602
General and administrative			15,861				16,232
Depreciation and amortization			9,103				8,408
Total operating expenses			404,219				328,604
Operating loss			(83,284	)			(103,615	)
Other income (expense)
Interest expense, net of interest income			(480	)			(2,562	)
Amortization of debt discount			(650	)			(625	)
Other income (expense)			(318	)			608
Total other expense			(1,448	)			(2,579	)
Loss from continuing operations before income taxes			(84,732	)			(106,194	)
Income tax benefit			247				392
Net loss from continuing operations			(84,485	)			(105,802	)
Discontinued operations
Income (loss) from discontinued operations before income taxes			669				(46,944	)
Income tax benefit			-				-
Net income (loss) from discontinued operations			669				(46,944	)
Net loss			(83,816	)			(152,746	)
Less: Net loss attributable to non-controlling interest			5				98
Net loss attributable to common shareholders		$	(83,811	)		$	(152,648	)
Other comprehensive income (loss)
Foreign currency translation adjustment			3,858				(8,720	)
Comprehensive loss attributable to common shareholders		$	(79,953	)		$	(161,368	)
Net loss per share attributable to common shareholders
Basic and diluted loss per share from continuing operations		$	(0.29	)		$	(0.57	)
Basic and diluted loss per share from discontinued operations		$	(0.00	)		$	(0.25	)
Basic and diluted net loss per share		$	(0.29	)		$	(0.82	)
Weighted average shares outstanding:
Basic and diluted			292,693,961				186,750,504
Stock-based compensation was allocated as follows:
Subscriber related expenses			38				15
Sales and marketing			5,915				5,429
Technology and development			2,901				2,351
General and administrative			3,853				4,454
Total stock-based compensation			12,707				12,249

 

 

fuboTV Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

		September 30,				December 31,
		2023				2022
		Unaudited				Audited
ASSETS
Cash and cash equivalents		$	259,935			$	337,087
Accounts receivable, net			62,092				43,996
Prepaid sports rights			39,331				37,668
Prepaid and other current assets			18,915				13,508
Assets of discontinued operations			813				4,643
Total current assets			381,086				436,902
Property and equipment, net			4,942				4,975
Restricted cash			6,138				6,139
Intangible assets, net			162,549				171,832
Goodwill			617,394				618,506
Right-of-use assets			36,614				35,888
Other non-current assets			11,750				3,532
Total assets		$	1,220,473			$	1,277,774
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable			60,489				66,952
Accrued expenses and other current liabilities			270,586				264,415
Notes payable			6,158				5,687
Deferred revenue			85,898				65,370
Long-term borrowings - current portion			1,652				1,986
Current portion of lease liabilities			4,999				1,763
Liabilities of discontinued operations			21,475				32,581
Total current liabilities			451,257				438,754
Convertible notes, net of discount			396,012				394,094
Deferred income taxes			280				765
Lease liabilities			39,353				39,266
Other long-term liabilities			135				1,565
Total liabilities			887,037				874,444
Redeemable non-controlling interest			-				1,648
Shareholders’ equity:
Common stock par value $0.0001: 800,000,000 shares authorized; 292,778,171 and 209,684,548 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively			29				21
Additional paid-in capital			2,121,742				1,972,006
Accumulated deficit			(1,775,452	)			(1,558,088	)
Non-controlling interest			(11,314	)			(11,662	)
Accumulated other comprehensive income (loss)			(1,569	)			(595	)
Total shareholders’ equity			333,436				401,682
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,220,473			$	1,277,774

 

 

fuboTV Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

		For the Nine Months Ended
		September 30,
		2023				2022
		Unaudited				Unaudited
Cash flows from operating activities
Net loss		$	(217,390	)		$	(409,837	)
Less: Income (loss) from discontinued operations, net of tax			4,672				(80,708	)
Net loss from continuing operations			(222,062	)			(329,129	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			26,858				28,174
Stock-based compensation			39,451				42,540
Amortization of debt discount			1,918				1,844
Gain on sale of assets			2				-
Deferred income tax benefit			(482	)			(1,150	)
Change in fair value of warrant liabilities			-				1,701
Amortization of right-of-use assets			2,337				2,357
Other adjustments			477				1,571
Changes in operating assets and liabilities of business, net of acquisitions:
Accounts receivable, net			(18,123	)			(9,846	)
Prepaid expenses and other assets			(14,173	)			(858	)
Prepaid sports rights			(1,125	)			(32,334	)
Accounts payable			(7,545	)			18,476
Accrued expenses and other liabilities			605				(9,415	)
Deferred revenue			20,543				14,448
Lease liabilities			(1,669	)			953
Net cash used in operating activities - continuing operations			(172,988	)			(270,668	)
Net cash used in operating activities - discontinued operations			(2,569	)			(25,149	)
Net cash used in operating activities			(175,557	)			(295,817	)
Cash flows from investing activities
Purchases of short term investments			-				(100,000	)
Purchases of property and equipment			(375	)			(1,031	)
Sale of property and equipment			11				-
Capitalization of Internal Use Software			(12,875	)			(3,519	)
Purchase of intangible assets			(2,899	)			-
Net cash used in investing activities - continuing operations			(16,138	)			(104,550	)
Net cash used in investing activities - discontinued operations			-				(6,277	)
Net cash used in investing activities			(16,138	)			(110,827	)
Cash flows from financing activities
Proceeds from sale of common stock, net of fees			116,890				228,960
Redemption of NCI			(2,147	)			-
Vested restricted stock unit settled for cash			(125	)			-
Proceeds from exercise of stock options			259				749
Proceeds from the exercise of warrants			-				5,000
Repayments of notes payable and long-term borrowings			(335	)			(1,472	)
Net cash provided by financing activities - continuing operations			114,542				233,237
Net cash provided by financing activities - discontinued operations			-				-
Net cash provided by financing activities			114,542				233,237
Net decrease in cash, cash equivalents and restricted cash			(77,153	)			(173,407	)
Cash, cash equivalents and restricted cash at beginning of period			343,226				376,080
Cash, cash equivalents and restricted cash at end of period		$	266,073			$	202,673
Supplemental disclosure of cash flows information:
Interest paid			13,120				13,469
Income tax paid			190				-
Non cash financing and investing activities:
Shares settled liability			5,536				994
Reclassification of the equity components of the 2026 Convertible Notes to liability upon adoption of ASU 2020-06			-				75,264
Cashless exercise of warrants			-				5,249
Accrued expenses - At-the-market offering			6				292
Accounts payable - purchase of intangible assets			693				-
Accounts payable - purchase of property and equipment			403				-

 

 

Basis of Presentation – Continuing Operations

 

In connection with the dissolution of Fubo Gaming, Inc. and termination of Fubo Sportsbook, the assets and liabilities and the operations of our former wagering reportable segment, are presented as discontinued operations in our consolidated financial statements. With respect to our continuing operations, we operate as a single reportable segment. Financial information presented in this letter reflects Fubo’s results on a continuing operations basis, which excludes our former wagering reportable segment. Prior periods have been recast to conform to this presentation.

 

Key Performance Metrics and Non-GAAP Measures

 

Paid Subscribers

 

We believe the number of paid subscribers is a relevant measure to gauge the size of our user base. Paid subscribers (“subscribers”) is defined as total subscribers that have completed registration with Fubo, have activated a payment method (only reflects one paying user per plan), from which Fubo has collected payment from in the month ending the relevant period. Users who are on a free (trial) period are not included in this metric.

 

Average Revenue per User (ARPU)

 

Beginning in the third quarter of 2022, Average Revenue Per User (ARPU) is calculated using Subscription revenue and Advertising revenue on a GAAP basis. Previously, ARPU was calculated using Platform Bookings, which consisted of Subscription revenue and Advertising revenue, adjusted for deferred revenue.

 

We believe ARPU provides useful information for investors to gauge the revenue generated per subscriber on a monthly basis. ARPU, with respect to a given period, is defined as total Subscription revenue and Advertising revenue recognized in such period, divided by the average daily paid subscribers in such period, divided by the number of months in such period. Advertising revenue, like Subscription revenue, is primarily driven by the number of subscribers to our platform and per-subscriber viewership such as the type of, and duration of, content watched on platform. We believe ARPU is an important metric for both management and investors to evaluate the Company’s core operating performance and measure our subscriber monetization, as well as evaluate unit economics, payback on subscriber acquisition cost and lifetime value per subscriber. In addition, we believe that presenting a geographic breakdown for North America ARPU and ROW ARPU allows for a more meaningful assessment of the business because of the significant differences in both Subscription revenue and Advertising revenue generated on a per subscriber basis in North America when compared to ROW due to our current subscription pricing models and advertising monetization in the two geographic regions.

 

Adjusted EBITDA

 

Adjusted EBITDA is a non-GAAP measure defined as Net Loss from Continuing Operations, adjusted for depreciation and amortization, stock-based compensation, income tax benefit, other expenses, and one-time non-cash expenses.

 

 

Adjusted EBITDA Margin

 

Adjusted EBITDA Margin is a non-GAAP measure defined as Adjusted EBITDA divided by Revenue.

 

Adjusted Net Loss

 

Adjusted Net Loss is a non-GAAP measure defined as Net Loss Attributable to Common Shareholders, adjusting for discontinued operations, stock-based compensation, change in fair value of warrants, amortization of debt discount, amortization of intangible assets and other non-cash items.

 

Adjusted EPS (Earnings per Share)

 

Adjusted EPS is a non-GAAP measure defined as Adjusted Net Loss divided by weighted average shares outstanding.

 

Free Cash Flow

 

Free Cash Flow is a non-GAAP measure defined as net cash used in operating activities - continuing operations, reduced by capital expenditures (consisting of purchases of property and equipment and capitalization of internal use software). We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses, investments in our business, strategic acquisitions, and for certain other activities such as repaying debt obligations and stock repurchases. Free Cash Flow is a key financial indicator used by management. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. The use of Free Cash Flow as an analytical tool has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. Because of these limitations, Free Cash Flow should be considered along with other operating and financial performance measures presented in accordance with GAAP.

 

Gross Profit and Gross Margin (GAAP)

 

Gross Profit is defined as Revenue less Subscriber related expenses and Broadcasting and transmission. Gross Margin is defined as Gross Profit divided by Revenue. We believe these measures are useful because they represent key profitability metrics for our business and are used by management to evaluate the performance of our business, including measuring the cost to deliver our product to subscribers against revenue.

 

Revenue Growth Presented on a Constant Currency Basis

 

Revenue growth presented on a constant currency basis is a non-GAAP measure defined as revenues for a given period restated at the comparative period’s foreign currency exchange rates measured against the comparative period’s revenues.

 

Subscriber Acquisition Cost

 

Subscriber Acquisition Cost (SAC) reflects total GAAP sales and marketing expenses less headcount related to sales and marketing spend for a given period divided by Gross Paid Subscriber Additions for the same period.

 

Reconciliation of Key Performance Metrics and Non-GAAP Financial Measures

 

Certain measures used in this letter, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Loss, Adjusted EPS and Free Cash Flow, as well as revenue growth presented on a constant currency basis, are non-GAAP financial measures. We believe these are useful financial measures for investors as they are supplemental measures used by management in evaluating our core operating performance. Our non-GAAP financial measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. First, these non-GAAP financial measures are not a substitute for GAAP financial measures. Second, these non-GAAP financial measures may not provide information directly comparable to measures provided by other companies in our industry, as those other companies may calculate their non-GAAP financial measures differently.

 

The following tables include reconciliations of the non-GAAP financial measures used in this letter to their most directly comparable GAAP financial measures. We have recast our previously disclosed non-GAAP financial measures to only reflect the results from continuing operations, thereby removing the discontinued operations of our former wagering reportable segment.

 

 

fuboTV Inc.

Reconciliation of GAAP Subscription and Advertising Revenue to North America ARPU

(in thousands, except average subscribers and average per user amounts)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Subscription Revenue (GAAP)		$	289,623			$	201,911
Advertising Revenue (GAAP)			30,592				22,714
Subtract:
ROW Subscription Revenue			(8,108	)			(5,613	)
ROW Advertising Revenue			(285	)			(172	)
Total			311,822				218,840
Divide:
Average Subscribers (North America)			1,244,579				1,020,045
Months in Period			3				3
North America Monthly Average Revenue per User (NA ARPU)		$	83.51			$	71.51

 

 

fuboTV Inc.

Reconciliation of GAAP Subscription and Advertising Revenue to ROW ARPU

(in thousands, except average subscribers and average per user amounts)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Subscription Revenue (GAAP)		$	289,623			$	201,911
Advertising Revenue (GAAP)			30,592				22,714
Subtract:
North America Subscription Revenue			(281,515	)			(196,298	)
North America Advertising Revenue			(30,307	)			(22,542	)
Total			8,393				5,785
Divide:
Average Subscribers (ROW)			400,806				352,722
Months in Period			3				3
ROW Monthly Average Revenue per User (ROW ARPU)		$	6.98			$	5.47

 

 

fuboTV Inc.

Reconciliation of Net Loss from Continuing Operations to Non-GAAP Adjusted EBITDA

(in thousands)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA
Net loss from continuing operations		$	(84,485	)		$	(105,802	)
Depreciation and amortization			9,103				8,408
Stock-based Compensation			12,707				12,249
Other expense			1,448				2,579
Income tax benefit			(247	)			(392	)
Adjusted EBITDA			(61,474	)			(82,958	)
Adjusted EBITDA			(61,474	)			(82,958	)
Divide:
Revenue			320,935				224,989
Adjusted EBITDA Margin			-19.2	%			-36.9	%

 

 

fuboTV Inc.

Reconciliation of Net Cash Used in Operating Activities - Continuing Operations to Free Cash Flow

(in thousands)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Net cash used in operating activities - continuing operations		$	(24,921	)		$	(68,039	)
Subtract:
Purchases of property and equipment			(108	)			(69	)
Capitalization of internal use software			(4,471	)			(1,570	)
Free Cash Flow			(29,500	)			(69,678	)

 

 

fuboTV Inc.

Reconciliation of Net Loss Attributable to Common Shareholders to Non-GAAP Adjusted Net Loss and Adjusted EPS

(in thousands)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Net loss attributable to common shareholders		$	(83,811	)		$	(152,648	)
Subtract:
Net income (loss) from discontinued operations			669				(46,944	)
Net loss from continuing operations attributable to common shareholders			(84,480	)			(105,704	)
Net loss from continuing operations attributable to common shareholders			(84,480	)			(105,704	)
Stock-based Compensation			12,707				12,249
Amortization of debt discount			650				625
Amortization of intangibles			8,839				8,093
Adjusted net loss from continuing operations			(62,284	)			(84,737	)
Weighted average shares outstanding:
Basic and diluted			292,693,961				186,750,504
Adjusted EPS from continuing operations		$	(0.22	)		$	(0.46	)

 

 

# # #

 

Contacts

 

Investor Contacts:

Alison Sternberg, Fubo

asternberg@fubo.tv

 

JCIR for Fubo

ir@fubo.tv

 

Media Contacts:

Jennifer L. Press, Fubo

jpress@fubo.tv

 

Bianca Illion, Fubo

billion@fubo.tv

 

 

Exhibit 99.2

 

FOR IMMEDIATE RELEASE

 

 

FUBO EXCEEDED GUIDANCE IN Q3 2023 WITH $313 MILLION TOTAL REVENUE, UP 43% YEAR-OVER-YEAR, AND RECORD 1.477 MILLION PAID SUBSCRIBERS IN NORTH AMERICA; RAISES FULL YEAR 2023 OUTLOOK

 

NEW YORK – NOVEMBER 3, 2023 – FuboTV Inc. (d/b/a/ Fubo) (NYSE: FUBO), the leading sports-first live TV streaming platform, today announced its financial results for the third quarter ended September 30, 2023. The Company also raised its previously stated full year 2023 guidance for North America.

 

Fubo achieved double digit growth versus the prior year in North America, delivering $313 million total revenue (up 43% year-over-year) and a record 1.477 million paid subscribers (up 20% year-over-year), meaningfully exceeding third quarter 2023 guidance. The Company delivered $30.3 million in North America ad revenue during the quarter, an increase of 34% year-over-year.

 

Notably, Fubo expanded average revenue per user (ARPU) in North America by 17% year-over-year to a record $83.51 during the quarter.

 

In the Rest of World (ROW), Fubo delivered $8.4 million total revenue (up 45% year-over-year) and 411,000 paid subscribers (up 15% year-over-year). ROW includes the results of Molotov, the French live TV streaming service acquired by Fubo in December 2021.

 

Fubo continued to steadily progress over the quarter toward its 2025 positive cash flow goal. The Company achieved year-over-year improvement in net loss of $21 million and a $43 million improvement in net cash used in operating activities. Also during the quarter, Fubo achieved a $40 million improvement in Free Cash Flow and a $21 million improvement in Adjusted EBITDA (AEBITDA). These improvements were a result of ongoing efforts to drive operating leverage across the business, and represent the third consecutive quarter of year-over-year improvements in these metrics. Additionally, Fubo reached 6% gross margin, a 884 bps year-over-year improvement year-over-year, as well as a 619 bps reduction in subscriber-related expenses (SRE) as a percentage of revenue to 89%, reflecting continued progress in optimizing content costs.

 

 

The Company maintained a strong balance sheet and healthy liquidity position, ending the quarter with $266 million in cash, cash equivalents and restricted cash. Fubo believes it has sufficient liquidity to fund its current operating plan and the momentum necessary to reach its 2025 positive cash flow goal.

 

Looking to full year 2023, Fubo is raising revenue and paid subscriber guidance in North America. The Company now expects to close the year with $1.319 billion - $1.324 billion in total revenue, representing 34% year-over-year growth at the midpoint (from previously stated guidance of $1.260 billion - $1.280 billion), and 1.584 million - 1.599 million paid subscribers, representing 10% year-over-year growth at the midpoint (from prior guidance of 1.565 million - 1.585 million).

 

Complete third quarter 2023 results are detailed in Fubo’s shareholder letter available on the company’s IR site.

 

“Fubo’s strong third quarter exceeded guidance in North America, highlighted by an all-time high in paid subscribers as well as double digit year-over-year revenue growth,” said David Gandler, co-founder and CEO, Fubo. “As we progress toward our 2025 positive cash flow goal, we are confident that a return to content aggregation and bundling - which we long predicted - is now a reality. Fubo’s aim is to be a super aggregator, offering consumers premium content delivered through an intuitive and personalized streaming experience, at multiple price points, all in a single app.”

 

“Fubo’s third quarter marked continued improvements across our key performance metrics, including subscriber growth, gross margin, ARPU expansion and advertising revenue growth,” said Edgar Bronfman Jr., executive chairman, Fubo. “Looking ahead, as we raise full year 2023 guidance, we remain confident in the value proposition of our business model and believe we are well positioned to further benefit from industry trends, including the growing number of consumers subscribing to vMVPD services and the significant increase in CTV advertising.”

 

Live Webcast

 

CEO, Gandler and CFO, John Janedis will host a live conference call today at 8:30 a.m. ET to deliver brief remarks followed by Q&A. The live webcast will be available on the Events & Presentations page of Fubo’s investor relations website. An archived replay will be available on Fubo’s website following the call. Participants should join the call 10 minutes in advance to ensure that they are connected prior to the event.

 

 

About Fubo

 

With a global mission to aggregate the best in TV, including premium sports, news and entertainment content, through a single app, FuboTV Inc. (d/b/a Fubo) (NYSE: FUBO) aims to transcend the industry’s current TV model. The company operates Fubo in the U.S., Canada and Spain and Molotov in France.

 

In the U.S., Fubo is a sports-first cable TV replacement product that aggregates more than 300 live sports, news and entertainment networks and is the only live TV streaming platform with every Nielsen-rated sports channel (source: Nielsen Total Viewers, 2022). Leveraging Fubo’s proprietary data and technology platform optimized for live TV and sports viewership, subscribers can engage with the content they are watching through an intuitive and personalized streaming experience. Fubo has continuously pushed the boundaries of live TV streaming. It was the first virtual MVPD to launch 4K streaming and MultiView, which it did years ahead of its peers.

 

Learn more at https://fubo.tv

 

Basis of Presentation – Continuing Operations

 

In connection with the dissolution of Fubo Gaming, Inc. and termination of Fubo Sportsbook in October 2022, the assets and liabilities and the operations of our former wagering reportable segment have been presented as discontinued operations in our consolidated financial statements. With respect to our continuing operations, we operate as a single reportable segment. Financial information presented in this release reflects Fubo’s results on a continuing operations basis, which excludes our former wagering reportable segment. Prior periods have been recast to conform to this presentation.

 

Key Performance Metrics and Non-GAAP Measures

 

Paid Subscribers

 

We believe the number of paid subscribers is a relevant measure to gauge the size of our user base. Paid subscribers is defined as total subscribers that have completed registration with Fubo, have activated a payment method (only reflects one paying user per plan), from which Fubo has collected payment from in the month ending the relevant period. Users who are on a free (trial) period are not included in this metric.

 

Average Revenue per User (ARPU)

 

Beginning in the third quarter of 2022, Average Revenue Per User (ARPU) is calculated using Subscription revenue and Advertising revenue on a GAAP basis. Previously, ARPU was calculated using Platform Bookings, which consisted of Subscription revenue and Advertising revenue, adjusted for deferred revenue.

 

 

We believe ARPU provides useful information for investors to gauge the revenue generated per subscriber on a monthly basis. ARPU, with respect to a given period, is defined as total Subscription revenue and Advertising revenue recognized in such period, divided by the average daily paid subscribers in such period, divided by the number of months in such period. Advertising revenue, like Subscription revenue, is primarily driven by the number of subscribers to our platform and per-subscriber viewership such as the type of, and duration of, content watched on platform. We believe ARPU is an important metric for both management and investors to evaluate the Company’s core operating performance and measure our subscriber monetization, as well as evaluate unit economics, payback on subscriber acquisition cost and lifetime value per subscriber. In addition, we believe that presenting a geographic breakdown for North America ARPU and ROW ARPU allows for a more meaningful assessment of the business because of the significant differences in both Subscription revenue and Advertising revenue generated on a per subscriber basis in North America when compared to ROW due to our current subscription pricing models and advertising monetization in the two geographic regions.

 

Adjusted EBITDA

 

Adjusted EBITDA is a non-GAAP measure defined as Net Loss from Continuing Operations, adjusted for depreciation and amortization, stock-based compensation, income tax benefit, other expenses, and one-time non-cash expenses.

 

Gross Profit and Gross Margin (GAAP)

 

Gross Profit is defined as Revenue less Subscriber related expenses and Broadcasting and transmission. Gross Margin is defined as Gross Profit divided by Revenue. We believe these measures are useful because they represent key profitability metrics for our business and are used by management to evaluate the performance of our business, including measuring the cost to deliver our product to subscribers against revenue.

 

Free Cash Flow

 

Free Cash Flow is a non-GAAP measure defined as net cash used in operating activities - continuing operations, reduced by capital expenditures (consisting of purchases of property and equipment and capitalization of internal use software). We believe Free Cash Flow is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses, investments in our business, strategic acquisitions, and for certain other activities such as repaying debt obligations and stock repurchases. Free Cash Flow is a key financial indicator used by management. Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. The use of Free Cash Flow as an analytical tool has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures. Because of these limitations, Free Cash Flow should be considered along with other operating and financial performance measures presented in accordance with GAAP.

 

Reconciliation of Non-GAAP Financial Measures

 

Certain measures used in this release, including Adjusted EBITDA and Free Cash Flow, are non-GAAP financial measures. We believe these are useful financial measures for investors as they are supplemental measures used by management in evaluating our core operating performance. Our non-GAAP financial measures have limitations as analytical tools and you should not consider them in isolation or as a substitute for an analysis of our results under GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. First, these non-GAAP financial measures are not a substitute for GAAP financial measures. Second, these non-GAAP financial measures may not provide information directly comparable to measures provided by other companies in our industry, as those other companies may calculate their non-GAAP financial measures differently.

 

The following table includes a reconciliation of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measure.

 

 

fuboTV Inc.

Reconciliation of GAAP Subscription and Advertising Revenue to North America ARPU

(in thousands, except average subscribers and average per user amounts)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Subscription Revenue (GAAP)		$	289,623			$	201,911
Advertising Revenue (GAAP)			30,592				22,714
Subtract:
ROW Subscription Revenue			(8,108	)			(5,613	)
ROW Advertising Revenue			(285	)			(172	)
Total			311,822				218,840
Divide:
Average Subscribers (North America)			1,244,579				1,020,045
Months in Period			3				3
North America Monthly Average Revenue per User (NA ARPU)		$	83.51			$	71.51

 

 

fuboTV Inc.

Reconciliation of Net Loss from Continuing Operations to Non-GAAP Adjusted EBITDA

(in thousands)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA
Net loss from continuing operations		$	(84,485	)		$	(105,802	)
Depreciation and amortization			9,103				8,408
Stock-based Compensation			12,707				12,249
Other expense			1,448				2,579
Income tax benefit			(247	)			(392	)
Adjusted EBITDA			(61,474	)			(82,958	)

 

 

fuboTV Inc.

Reconciliation of Net Cash Used in Operating Activities - Continuing Operations to Free Cash Flow

(in thousands)

Year-over-Year Comparison

 

		Three Months Ended
		September 30, 2023				September 30, 2022
		As-Reported				As-Reported
Net cash used in operating activities - continuing operations		$	(24,921	)		$	(68,039	)
Subtract:
Purchases of property and equipment			(108	)			(69	)
Capitalization of internal use software			(4,471	)			(1,570	)
Free Cash Flow			(29,500	)			(69,678	)

 

 

Cautionary Note Regarding Forward-Looking Statements

 

This press release contains forward-looking statements of FuboTV Inc. (“Fubo”) that involve substantial risks and uncertainties. All statements contained in this press release that do not relate to matters of historical fact are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995, including statements regarding our business strategy and plans, industry trends and market opportunity, our financial condition, our anticipated financial performance, our anticipated cash requirements, our expectations regarding profitability and becoming cash flow positive in 2025. The words “could,” “will,” “plan,” “intend,” “anticipate,” “approximate,” “expect,” “potential,” “believe” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that Fubo makes due to a number of important factors, including but not limited to the following: our ability to achieve or maintain profitability; risks related to our access to capital and fundraising prospects to fund our financial operations and support our planned business growth; our revenue and gross profit are subject to seasonality; our operating results may fluctuate; the long-term nature of our content commitments; our ability to renew our long-term content contracts on sufficiently favorable terms; our ability to effectively manage our growth; our ability to attract and retain subscribers; obligations imposed on us through our agreements with certain distribution partners; we may not be able to license streaming content or other rights on acceptable terms; the restrictions imposed by content providers on our distribution and marketing of our products and services; our reliance on third party platforms to operate certain aspects of our business; risks related to our reporting obligations; risks related to the difficulty in measuring key metrics related to our business; risks related to preparing and forecasting our financial results; risks related to the highly competitive nature of our industry; risks related to our technology, as well as cybersecurity and data privacy-related risks; risks related to ongoing or future legal proceedings; and other risks, including the effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates, and changes in tax and other laws, regulations, rates and policies. Further risks that could cause actual results to differ materially from those matters expressed in or implied by such forward-looking statements are discussed in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 filed with the Securities and Exchange Commission (“SEC”), our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 to be filed with the SEC, and our other periodic filings with the SEC. We encourage you to read such risks in detail. The forward-looking statements in this press release represent Fubo’s views as of the date of this press release. Fubo anticipates that subsequent events and developments will cause its views to change. However, while it may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. You should, therefore, not rely on these forward-looking statements as representing Fubo’s views as of any date subsequent to the date of this press release.

 

# # #

 

Investor Contacts

 

Alison Sternberg, Fubo

asternberg@fubo.tv

 

JCIR for Fubo

ir@fubo.tv

 

Media Contacts

 

Jennifer L. Press, Fubo

jpress@fubo.tv

 

Bianca Illion, Fubo

billion@fubo.tv

 

v3.23.3

Cover	Nov. 03, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 03, 2023
Entity File Number	001-39590
Entity Registrant Name	fuboTV Inc. /FL
Entity Central Index Key	0001484769
Entity Tax Identification Number	26-4330545
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	1290 Avenue of the Americas
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10104
City Area Code	(212)
Local Phone Number	672-0055
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	FUBO
Security Exchange Name	NYSE
Entity Emerging Growth Company	false

---