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fuboTV (FUBO) Q2 Loss Narrows Year Over Year, Revenues Rise

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fuboTV Inc. (FUBO - Free Report) reported second-quarter 2021 adjusted loss of 68 cents per share, much narrower than the reported loss of $2.08 per share in the year-ago quarter.

Revenues of $130.9 million (excluding revenue from FaceBank AG) surged 196% year over year driven by solid growth in advertising revenues and continued spike in subscription revenues.

Moreover, average revenue per user (ARPU) grew 30% to $71.43 (on a trailing 12-month basis) driven by increased per-user engagement, pricing, sell-in of bundled products and advertising expansion.

Subscription ARPU and advertising ARPU were $62.73 and $8.70, up 26.9% and 62%, respectively.

fuboTV Inc. Price, Consensus and EPS Surprise

fuboTV Inc. Price, Consensus and EPS Surprise

fuboTV Inc. price-consensus-eps-surprise-chart | fuboTV Inc. Quote

Top-Line Details

Subscription (87.1% of revenues) revenues increased 189% year over year to $114.4 million.

Content hours streamed by fuboTV users (paid & trial) increased 148% year over year to 245 million. Monthly Active Users (MAUs) watched 134 hours per month on average, demonstrating strong engagement with platform’s leading sports, news and entertainment content.

fuboTV ended second-quarter 2021 with 681,721 paid subscribers, up 138% year over year. Net subscriber additions in the second quarter of 2021 were 91K compared to a decline of around 1K in the second quarter of 2020. The year-over-year growth was driven by the company’s sports-first positioning, which differentiates fuboTV from other live TV streaming platforms.

Aided by the company’s carriage agreement with Disney Media Networks and ESPN, fuboTV has one of the strongest football offerings in the market and is the only live streaming TV platform with every NFL in-market game and every college conference network.

Markedly, 94% of content was viewed on a big-screen connected TV and 89% of viewing was for live content.

Advertising (12.6% of revenues) revenues soared 281% year over year to $16.5 million.

Other revenues (0.3% of revenues) were $0.3 million.

Operating Details

Total GAAP operating expenses in the second quarter of 2021 were $211.9 million. Sales and marketing expenses totaled $21.5 million. General and administrative expenses totaled $28.2 million.

Subscriber-related expenses totaled $120.9 million, an increase of 127% year over year, primarily driven by growth in subscribers.

The company reported a net loss attributable to common stockholders of $94.9 million in second-quarter 2021.

Adjusted EBITDA loss was $47.4 million compared with $40.4 million loss in the year-ago period.

Balance Sheet

The company ended the second quarter of 2021 with $412.1 million of cash, cash equivalents and restricted cash. This included the repayment in full of the $18.1 million senior secured loan with AMC Networks.

Operating cash flow in the quarter was negative $33.6 million, improving $20.2 million compared to the first quarter of 2021.

As of Jun 30, 2021, the company had 140,920,362 common shares issued and outstanding.

Guidance

For third-quarter 2021, fuboTV expects revenues in the range of $140-$144 million, up 132% year over year at the midpoint.

Third-quarter end-of-period subscribers are estimated to be between 810K and 820K, up 79% year over year at the midpoint.

For 2021, the company expects revenues in the range of $560-$570 million, indicating a 116% year-over-year increase at the mid-point, up from an increase of 101% from its prior guidance.

FuboTV expects total year-end subscribers between 910K-920K, indicating an increase of 67% year over year at the midpoint. This subscriber outlook implies full-year 2021 net additions of at least 367K, up 58% from 2020 net additions of 232K.

Zacks Rank & Other Stocks to Consider

fuboTV currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology sector include Microsoft (MSFT - Free Report) , Cadence Design Systems (CDNS - Free Report) and Texas Instruments (TXN - Free Report) , all carrying a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rate for Microsoft, Cadence Design and Texas Instruments is currently pegged at 11.09%, 11.68% and 9.33%, respectively.