FuboTV Delivers Strong Q1 Results, Stock Jumps 9.68%

Sports streaming company FuboTV (FUBO) reported strong improvements in its first-quarter results compared to a year ago. It also offered upbeat second-quarter guidance and raised its 2021 outlook. The stock rose 9.68% on Wednesday to close at $19.38.

Revenue came in at $119.7 million, marking a 135% year-over-year increase. The company’s subscription and advertising businesses performed well during the quarter. It ended Q1 with 590,430 subscribers, representing an increase of 105%. That led to a 131% increase in subscription revenue to $107.1 million.

Ad revenue jumped 206% to $12.6 million. Fubo’s average revenue per user increased 28% to $69.09. The company posted a loss per share of $0.59. It described this as its strongest quarter in history.

“For the first time in any first quarter, we reported sequential revenue and subscriber growth, despite past seasonality trends. This tells us that consumers are increasingly cutting the cord. We believe they are choosing fuboTV,” said Fubo co-founder and CEO David Gandler.

The company guided Q2 revenue in the band of $120 million – $122 million. It is aiming to finish the quarter with at least 600,000 subscribers. For full-year 2021, it raised its revenue forecast to the $520 million – $530 million range. It had previously offered revenue guidance of $460 million – $470 million. (See Fubo stock analysis on TipRanks)

Roth Capital analyst Darren Aftahi reiterated a Buy rating on Fubo stock but cut the price target to $42 from $55. Aftahi’s new price target still points to 116.72% upside potential over the current price.

“We maintain our premium multiple on the premise of faster growth and an angle on sports betting, which over time could be leveraged into higher engagement,” commented Aftahi.

Consensus among analysts on Wall Street is a Strong Buy based on 6 Buy and 1 Hold ratings. The average analyst price target of $43.14 implies 122.60% upside potential to current levels.

FUBO scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating the stock’s returns are likely to align with market performance.