FuboTV Inc. Preliminary Results were 'Positive', Says Analysts

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By Sam Boughedda 

FuboTV Inc. (NYSE:FUBO) pre-announced preliminary third quarter results on Monday, saying it expects revenue and subscriber growth for North America to exceed previously issued guidance.

In addition, North American revenue is also expected to exceed guidance, coming in at $210 million, an increase of approximately 34% year-over-year, while the Rest of the World revenue is likely to be at least $5.5 million.

Following the report, BTIG analysts, who have a Neutral rating on the stock, said the results were positive overall.

"Total Rev of $215.5M+ fell in-line to slightly ahead of BTIG/consensus ($214/$215M), but we suspect the key here will be sub vs. ads split, rather than absolute upside. Revenue mix (90.1% sub revenue in 2Q22) and NA sub upside suggests the beat was probably driven primarily by sub revenue than ads; however, sustained shifts in ad dollars from linear to CTV means we are likely to see FUBO's ad revenue continue to trend higher in absolute with potentially less seasonal/macro variance over the next several quarters," wrote the analysts.

Meanwhile, assessing the company's third quarter, Wedbush analysts, who have an Outperform rating and $6 price target on the stock, said a "decent Q3 and wagering closure bode well on path to profitability."

"After years of losses, fuboTV intends to be FCF positive and achieve an adjusted EBITDA margin of positive 15% by 2025. However, its near-term focus is on cutting cash burn rapidly and raising capital to extend its cash runway. We are confident that fuboTV can do both, but it is uncertain how dilutive the capital raise will be and how rapidly their cash burn will improve," explained the analysts.

"We believe our $6 price target fully prices in that uncertainty. fuboTV has a solid head start in offering live sports programming to its subscribers and has a thriving and growing advertising business. However, its slowing subscriber growth, fierce competition, inflation, and rising content costs present near-term hurdles."

Fubo shares are up over 3% at the time of writing.