FUBO Results: FuboTv posts a net loss in the third quarter despite improvements

FuboTV (FUBO), the sports-first streaming platform, reported a net loss of $54.7 million for the third quarter of 2024, resulting in a 9% decline during regular trading hours today. However, this loss represents a significant improvement from last year's deficit of $84.4 million. With revenue up 21% year-over-year to $377 million – right in line with analyst expectations – and a subscriber base of 1.613 million, Fubo proves its resilience in a crowded market. CEO David Gandler noted, “Fubo delivered strong third-quarter results marked by continued top-line expansion and notable bottom-line improvements.”

FUBO EPS reflects positive trends

The EPS loss of $0.17 this quarter, compared to $0.29 last year, shows Fubo's financial recovery, especially as analysts expected an EPS loss of $0.18 had. Adjusted earnings per share also improved, coming in at a loss of $0.08 compared to $0.22 in the third quarter of 2023. These improvements are a clear sign that Fubo is tightening its financial belt and expanding at the same time focused on sustainable growth.

FUBO sees positive growth in North America

Fubo's growth story is mixed, with strong positive momentum in North America. Average revenue per user (ARPU) increased to $85.64, up 2.5% year-over-year. This success helped the company post a solid total revenue of $377 million for the quarter. However, the Rest of the World (ROW) segment, which includes French streaming service Molotov, reported revenue of just $8.9 million and an 8.1% decline in subscribers. This duality underscores Fubo's strength in North America despite challenges abroad.

FUBO's share buybacks signal confidence

Fubo is also targeting positive free cash flow by 2025 and plans share buybacks to signal confidence in its stock. With cash on hand of $152.3 million at the end of the quarter, Fubo has room to invest in growth or reward shareholders.

Is Fubo a good stock to buy now?

Analysts remain on the sidelines on FUBO stock, with a Hold consensus rating based on two buys, four holds, and one sell. Over the past year, FUBO has fallen more than 30%, and the average FUBO price target of $2.88 implies an upside potential of 81% from current levels. These analyst ratings are likely to change following FUBO's results today.

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