FuboTV Lower After Posting Wider Loss, Higher Revenue

FuboTV shares were lower after hours. The loss widened and revenue was stronger than expected.
Author:
Publish date:

FuboTV  (FUBO) - Get Report shares fell in after-hours trading Tuesday, after the sports-focused streaming TV platform posted a wider fourth-quarter loss on higher-than-expected revenue.

Fubo reported a loss of $2.47 a share, widening from $1.07 a share in the year-earlier fourth quarter. The latest per-share figure was worse than the FactSet analyst forecast of an 85-cent loss.

Revenue registered $105.1 million in the quarter, swinging from negative revenue of $1.6 million in the year-earlier quarter. The analyst consensus called for revenue of $95.1 million in the latest quarter.

FuboTV recently traded at $40.26, down 3.9%. The stock closed the regular Tuesday session up 8% at $41.89. And it has skyrocketed almost five-fold over the past year, with investors impressed by its story and performance.

FuboTV "executed across all key performance indicators: revenue, average revenue per user, advertising average revenue per user, contribution margin and paid subscribers -- exceeding our previously announced guidance," the company said in a statement.

Month average revenue per user rose 17% in the quarter to $69.19. Subscribers jumped 73% to 548,000 from 316,000.

The "strength of our Q4 net additions was driven by many factors, including our sports-first positioning, which differentiates FuboTV from other live TV streaming platforms,” the company said.

In January, Needham analyst Laura Martin reiterated her buy rating and share-price target of $60 for Fubo.

Positive factors for the company include stronger-than-expected subscriber growth, a live sports button on Hisense's Vidaa TVs available at Walmart  (WMT) - Get Report and new wagering revenues to begin in the next year, Martin said, according to Seeking Alpha.