fuboTV Delivers Stellar Q2 Results; Shares Surge 16%

fuboTV Inc. (FUBO), a sports-focused live TV streaming service, delivered stellar second-quarter results driven by continued momentum in its business. The company recorded triple-digit growth across all key metrics, with engagement reaching an all-time high of 245 million hours of customer streaming during the quarter. Following the news, shares were up almost 16% in pre-market trading at the time of writing.

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The company reported an adjusted loss of $0.38 per share, narrower than the estimated loss of $0.50 per share. In the prior-year quarter, FUBO reported an adjusted loss of $1.46 per share.

Additionally, total revenue climbed 196% year-over-year to $130.88 million and outpaced the Street’s estimate of $118.88 million.

Moreover, FUBO’s advertising revenue and subscription revenue both witnessed triple-digit growth of 281% and 189% year-over-year, respectively. fuboTV also added a net 91,291 subscribers during the quarter. (See fuboTV stock charts on TipRanks)

Notably, the company’s advertising Monthly Average Revenue Per User (ARPU) and total Monthly ARPU increased by 62% and 30% year-over-year, respectively.

Edgar Bronfman Jr., Executive Chairman of the company, said, “We are very pleased with fuboTV’s performance in the first half of 2021 and believe that we are well-positioned to continue to execute on our long-term financial and operating goals, all while delivering a differentiated and world-class experience to the consumer.”

Based on the company’s solid second-quarter performance and strength of macro tailwinds, fuboTV raised its full-year 2021 guidance.

For the third quarter, FUBO guided for revenue to be in the range of $140 – $144 million, while the consensus estimate is pegged at $126.9 million.

For FY2021, the company now projects revenue to fall in the range of $560 – $570 million, higher than the consensus estimate of $531.7 million.

Additionally, the company also forecasts its net subscribers to reach 910,000 – 920,000 by year-end.

In response to the company’s outstanding results, Wedbush analyst Michael Pachter maintained a Buy rating on the stock with a price target of $53, implying 85.1% upside potential to current levels.

The analyst noted that FUBO exceeded its revenue and subscriber guidance in Q2, and guided for well above the consensus for Q3.

Commenting on the company’s performance, Pachter said, “fuboTV’s ability to offer comprehensive entertainment and sports viewing is a real differentiator, and its focus on the sports viewer/bettor should serve to accelerate subscriber growth. As the company learns more about the viewing habits of its audience, it should be able to exploit its data set to drive ad ARPU even higher.”

Overall, the stock commands a Strong Buy consensus rating based on 6 Buys and 1 Hold. The average fuboTV price target of $38.86 implies 35.7% upside potential to current levels. Shares have gained 18.2% year-to-date.