Correction: An earlier version of this story said Fubo added subscribers in the 1st quarter. Fubo was up 130,000 year-over-year but down 160,000 in the 1st quarter vs the end of 2022. We apologize for this mistake.
Today Fubo reported their 1st quarter 2023 earnings and posted 160,000 new subscribers in just three months.
“We are pleased with Fubo’s execution to start 2023 – beating expectations across our KPIs – and our increased North America guidance for the year reflects our confidence in our continued leadership in streaming,” said David Gandler, co-founder and CEO, Fubo. “In addition, we remain confident in our path to generate positive cash flow in 2025. While the macro uncertainty continues, the second quarter has started well, with customer engagement ongoing and advertising accelerating sequentially. We look forward to keeping shareholders updated on our progress in the quarters to come.”
“Fubo’s strong first quarter results mark continued traction towards our 2025 profitability targets,” said Edgar Bronfman Jr., executive chairman, Fubo. “We meaningfully exceeded the midpoint of our first quarter subscriber growth and revenue guidance in North America by 135,000 subscribers and $19 million respectively. Considerable progress was also made toward our goal of becoming cash flow and Adjusted EBITDA (AEBITDA) positive. We are confident that our current cash balance is sufficient to achieve positive cash flow in 2025 based on our current operating plan. Accordingly, we have no further plans to utilize the at-the-market (ATM) program based on our current outlook.”
Fubo reported total revenues were up 34% year over year to $316.5 million. In total, though, the net loss for the 1st quarter of 2023 was $83.4 million. The good news is that is an improvement from the $128.4 million they lost during the same period of 2022.
The biggest news here is Fubo has decreased their per-subscriber costs from 101% to 93%. Fubo says they plan to optimize their pricing to further improve their mix of premium plans. Exactly what it means to optimize their pricing is something we will have to wait and find out.
Fubo says in Q2 2023, they project 1,120,000 to 1,140,000 new subscribers, representing 19% year-over-year growth at the midpoint, and revenue of $292.5 to $297.5 million, representing 36% year-over-year growth at the midpoint.