fuboTV Announces Preliminary Q4 Results: Revenue and Subscriber Growth Better Than Expected

It's not often that companies give out their quarterly results early. The period in question was either better than expected or worse.
Fortunately for fuboTV shareholders, it was the latter. Management was eager to get the word out that revenue and subscriber growth are better than expected.

The image is from the same source.

Last week, the stock of fuboTV jumped.

fuboTV provided guidance about how much revenue and subscriber growth it expected in the fourth quarter when it announced its third-quarter results. The estimate for revenues in the range of $205 million and $210 million would have increased by over 100% from the year before. The subscriber count was forecast to grow to between 1.06 million and 1.07 million, which would have been an increase of 94% year over year.

fuboTV management said on Monday that they now expect revenue to be in the range of $215 million to $220 million. It now expects its subscriber count to be more than one million. The low end of the range it was guiding for was 40,000 more than it is now.

fuboTV's strong preliminary fourth-quarter results close out a pivotal year where we made meaningful improvements against our mission to define a new category of interactive sports and entertainment television," said CEO and co-founder David Gandler. In the fourth quarter, we continued to deliver triple-digit revenue growth, alongside operating leverage, through the efficient deployment of acquisition spend and the retention of high-quality customer cohort.

The news was good for shareholders and the market, which shot the stock higher by more than 7%. Since the preliminary release, the stock has given up those gains, trading 3.2% lower. Last week's pre-released earnings only provided temporary relief as the stock got hammered in 2021.

The management left out a detail.

There was something missing from the report. The company didn't give any profit or loss figures. In the third quarter, it lost $105 million on the bottom line and generated revenue of $157 million. There's still some question as to whether or not fuboTV's business model can eventually reach a profitable scale.

The company's balance sheet is draining due to the consistent losses. fuboTV had $393 million in cash on hand and a loss of $143 million in cash from operations in the third quarter.

The management says that it has $375 million in cash on hand. It's not clear if it raised capital by selling stock or borrowing funds. The results are good news for shareholders. When the company announces completed Q4 results in the coming weeks, investors should keep an eye on that.