FuboTV shares soared at the open on Friday after the sports-first live TV streaming platform posted a second-quarter earnings beat and raised its full-year 2023 guidance for North America.
The company’s revenue of $305 million for 2Q exceeded the consensus analyst expectation of $301.9 million per Zacks Consensus Estimate. This was a 41% increase over the year-ago quarter.
Its advertising revenue rose 5% year-over-year to $22.8 million, which the company said was part of its “expected return to growth despite a challenged advertising market”.
It narrowed its net loss from $95 million in the same period last year to $54.2 million.
Adjusted loss per share improved to $0.12 from a loss per share of $0.39 in the year-ago quarter. This also topped the Street estimate of a loss per share of $0.23.
Paid subscribers increased 23% over 2Q 2022 to 1,167,000.
“We are encouraged with our execution in the first half of the year, including posting year-over-year double-digit revenue and subscriber growth in the second quarter, while meaningfully reducing our net loss by $41 million," Fubo CEO David Gandler said in a statement.
The company exited the quarter with $299.7 million in cash and cash equivalents, which Fubo said should fund its operations until it expects to achieve positive cash flow in 2025.
For the full year, the company raised its North America guidance to paid subscribers in the range of 1,565,000 to 1,585,000 million, which would represent a 9% increase over 2022, and revenue between $1.26 billion to $1.28 billion, a 29% jump over the prior year.
Fubo shares opened 19.9% higher at US$3.85 on Friday.
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