In the fourth quarter of 2023, fuboTV Inc. (NYSE: FUBO) showcased robust performance across various key financial and operational metrics. Notably, the company posted a 12% year-over-year growth in North America (NA) subscribers, reaching an all-time high of 1.618 million, exceeding the midpoint of its guidance. The NA revenue also saw an impressive 29% year-over-year increase, amounting to $402 million, surpassing the midpoint of the guidance provided.
The gross margin witnessed a substantial improvement of 888 basis points (bps) year-over-year, reaching 10%. Additionally, the average revenue per user (ARPU) in NA reached an all-time high of $86.65, reflecting a notable 15% year-over-year increase. FuboTV also achieved a significant reduction in subscriber-related expenses (SRE) as a percentage of revenue, driving a 662 bps decrease to 87%.
From a profitability standpoint, the company demonstrated a healthy year-over-year improvement in net loss, with a $25 million improvement and a $19 million improvement in net cash used in operating activities compared to the fourth quarter of 2022. Adjusted EBITDA (AEBITDA) also saw a substantial improvement of $25 million, while free cash flow improved by $15 million year-over-year in the same period.
Looking ahead, the company remains optimistic about its prospects for 2024, expecting top-line growth across revenue and subscribers, as well as further leverage in reducing expenses. FuboTV plans to strategically invest in expanding its content offering, advancing technology, and enhancing monetization through advertising.
In terms of guidance, the company projects a conservative outlook for the first quarter of 2024, anticipating 1,415,000 to 1,435,000 subscribers, representing 11% year-over-year growth at the midpoint, and revenue of $365 to $375 million, reflecting a 17% year-over-year growth at the midpoint.
Furthermore, the company emphasized its commitment to providing a differentiated experience for consumers, balancing profitability targets and growth. FuboTV highlighted its strong balance sheet and healthy liquidity position, ending the quarter with $251 million in cash, cash equivalents, and restricted cash, signaling sufficient liquidity to support its current operating plan.
FuboTV Inc. is scheduled to host a live conference call to discuss its fourth-quarter 2023 earnings at 8:30 a.m. ET, where company executives will provide further insights and field questions.
For more details on the financial statements and SEC filings, interested parties are encouraged to visit the investor relations section of FuboTV's website at ir.fubo.tv.
Following these announcements, the company's shares moved -8.7%, and are now trading at a price of $1.89. For more information, read the company's full 8-K submission here.
