FuboTV (FUBO), the sports-first streaming platform, reported a net loss of $54.7 million for Q3 2024, prompting a 9% drop during regular trading hours today. However, this loss shows a significant improvement from last year’s $84.4 million deficit. With a revenue boost of 21% year-over-year, hitting $377 million—right in line with analyst expectations—and a subscriber base of 1.613 million, Fubo is showcasing resilience in a crowded market. CEO David Gandler noted, “Fubo posted strong third-quarter results, marked by continued expansion on the top-line and notable improvements on the bottom-line.”
FUBO EPS Reflects Positive Trends
The EPS loss of $0.17 this quarter, compared to $0.29 last year, demonstrates Fubo’s financial recovery, especially since analysts had expected an EPS loss of $0.18. Adjusted EPS also improved, landing at a loss of $0.08 versus $0.22 in Q3 2023. These improvements are a clear sign that Fubo is tightening its financial belt while focusing on sustainable growth.
FUBO Sees Positive Growth in North America
Fubo’s growth story is a mixed bag, with strong positive momentum in North America. The average revenue per user (ARPU) climbed to $85.64, reflecting a 2.5% increase year-over-year. This success helped the company generate a robust $377 million in total revenue for the quarter. However, the Rest of World (ROW) segment, which includes the French streaming service Molotov, saw revenues of just $8.9 million and an 8.1% decline in subscribers. This duality highlights Fubo’s strength in North America despite challenges abroad.
FUBO’s Share Repurchases Signal Confidence
Fubo is also setting its sights on positive free cash flow by 2025, with plans for share repurchases to indicate confidence in its stock. With $152.3 million in cash 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 sidelined about FUBO stock, with a Hold consensus rating based on two Buys, four Holds, and one Sell. Over the past year, FUBO has decreased by 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.
