Earning Date, Transcript Summary & Report

Earnings Surprise: fuboTV Inc. beats earnings expectations with reported EPS of $-0.02, exceeding expectations of $-0.16.

Record Revenue Achievement: 2024 was a record year for fuboTV, achieving total revenue of nearly $1.6 billion, up 19% year over year.

Subscriber Growth Milestone: Paid subscribers in North America reached 1,676,000, marking a 4% year-over-year increase, both metrics being all-time highs.

North America Revenue Increase: In Q4, total revenue in North America was approximately $434 million, an 8% year-over-year increase, in line with guidance.

Record ARPU Growth: Average revenue per user (ARPU) reached a record $87.90 in Q4, reflecting a 1.4% year-over-year expansion.

EBITDA and Cash Flow Improvement: Full-year adjusted EBITDA and free cash flow improved by over $100 million for the second consecutive year, indicating strong operational execution.

Strategic Merger Announcement: The company announced a definitive agreement with the Walt Disney Company to combine Hulu + Live TV, positioning fuboTV as the sixth largest player in the pay TV space by subscribers.

Multicultural Programming Initiative: The launch of the Z Family bundle targeting the South Asian demographic demonstrates fuboTV's commitment to multicultural programming and growth opportunities.

Price Reduction Strategy: The decision to lower the price of the Latino plan by 55% showcases fuboTV's focus on delivering value to customers.

Positive Free Cash Flow: fuboTV generated positive free cash flow of $16.3 million in Q4, marking its first quarter of positive free cash flow, highlighting financial discipline and sustainable growth.

Earnings Beat, Net Loss: - Despite beating earnings expectations with an EPS of $-0.02, the company still reported a net loss of $40.9 million, which, while improved from $71 million in Q4 2023, indicates ongoing financial challenges.

Advertising Revenue Decline: - The advertising revenue declined by 11.8% year over year to $34.4 million, primarily due to a decrease in ad-insertable content resulting from content portfolio adjustments.

Subscriber Decline Projection: - The first quarter subscriber guidance indicates a potential decline, projecting 1,430,000 to 1,460,000 subscribers, which represents a 4% year-over-year decline at the midpoint.

Subscriber Decline Concerns: - The rest of the world subscriber guidance is even more concerning, with expectations of 330,000 to 340,000 subscribers, reflecting a 16% year-over-year decline at the midpoint.

Modest Revenue Growth Projection: - Revenue guidance for the first quarter projects only $400 million to $410 million, which is a modest 3% year-over-year growth at the midpoint, indicating potential stagnation in revenue growth.

Subscriber Impact Concerns: - The decision not to renew the agreement with Univision, while aimed at reducing costs, may negatively impact subscriber offerings and customer satisfaction in the Latino market.