FuboTV (FUBO) - Get Report shares climbed on Wednesday after the television streaming platform reported a jump in third-quarter revenue and raised its guidance, boosted by sports, a busy news cycle, and Hollywood's fall entertainment.
Shares of the New York company at last check were climbing 23% to $19.21.
Revenue rose 47% to $61.2 million, while FactSet's consensus analyst forecast called for $54.3 million. Subscription revenue added 64% to $53.4 million and advertising revenue well more than doubled to $7.5 million.
FuboTV, which made its market debut last month, reported its net loss widened to $72.7 million, or $1.65 a share, from $6.2 million, or 25 cents, in the year-earlier period. The FactSet consensus called for a loss of 62 cents a share.
Total content hours streamed by FuboTV users (paid and free trial) in the quarter increased 83% year-over-year to 133.3 million.
"A heavy sports calendar, busy news cycle and Hollywood’s fall entertainment season delivered many viewing options for consumers," David Gandler, co-founder and chief executive of FuboTV, said in a statement.
In recent months, sports have returned despite the coronavirus pandemic, the company said. That's driven increased subscriber growth, viewership and ad revenue.
As a result, the company raised its fourth-quarter revenue guidance and now expects a range of $80 million to $85 million, a 51% to 60% increase year-over-year. The FactSet consensus calls for revenue of $81.7 million.
FuboTV also expects to end the fourth quarter with 500,000 to 510,000 paid subscribers, up 58% to 62% from a year earlier.
Full year 2020 revenue is expected to be $244 million to $248 million, up 65% from a year earlier and above the FactSet estimate of $238 million.
Full year 2021 revenue is expected to be $415 million to 435 million, up 70% year-over-year. FactSet's consensus is $425.1 million.
Earlier this year, FuboTV said it would merge with FaceBank Group, a virtual entertainment company, in a deal that valued the company at $700 million.