FuboTV’s stock jumped as much as 18 percent on Wednesday after the pay-TV streaming service reported second-quarter financial results that exceeded analyst forecasts and boosted its estimate for attracting additional customers to its platform.
FuboTV Second Quarter Earnings
The firm, which is mainly focused on sports channels, said its second-quarter success and economic tailwinds had allowed it to raise its full-year estimate for 2021.
Fubo (FUBO), +7.61 percent lost $94.9 million in the second quarter, or 68 cents per share, on revenue of $130.9 million, up from $44.2 million a year earlier. After accounting for stock-based compensation and other expenses, the business recorded losses of 38 cents per share, down from $2.46 in the previous quarter.
According to FactSet, analysts projected adjusted losses of 49 cents per share on revenue of $121.4 million after the firm forecasted $120 million to $122 million in sales. After ending with a 2.5 percent gain at $28.64, shares surged more than 10% higher in the extended session.
Expectations by next quarter and end of year
It now anticipates 910,000 to 920,000 subscribers, up from 830,000 to 850,000 in its prior projection by the end of the year. It also predicted sales of $560 million to $570 million, up from $520 million to $530 million in its prior forecast. Executives estimate 800,000 members in the third quarter, with 810,000 to 820,000 expected by the conclusion of the quarter, resulting in $140 million to $144 million in quarterly revenue. According to FactSet, analysts expected sales of $128.5 million in the third quarter.
A busy sports schedule, including exclusive broadcasts of South American qualification matches for the 2022 World Cup in Qatar, helped boost revenue and cut the quarter’s deficit, according to the business. Its adjusted loss of $0.38 per share was lower than the $0.49 per share FactSet expectation and the $1.46 per share loss a year earlier.
From $44.2 million a year ago, revenue almost quadrupled to $130.9 million, exceeding a projected $121 million.
Fubo provides a sports-focused streaming service and is planning to create a sportsbook that will mix gambling choices with the live events it broadcasts. The business is on schedule to debut that product by the end of the year, according to executives, who gave a sneak peek.
Fubo stock surged up near the end of last year after coming public late last year but has since settled down, putting the business at around $4 billion. Shares are up 186.4 percent in the last year, but down 37.5 percent in the last six months, compared to 31.9 percent and 13.4 percent for the S&P 500 index SPX, +0.13 percent in similar time periods.