Here’s why FuboTV soared 22% on Wednesday morning
- FuboTV says its revenue jumped over 100% in the fiscal first quarter.
- The streaming television service added 43,000 net new subscribers.
- FuboTV forecasts its subscriptions to grow over 50% in fiscal 2021.
FuboTV Inc. (NYSE: FUBO) shares soared 22% on Wednesday morning as the company reported robust financial results for its fiscal first quarter. On the back of hawkish Q1 performance, FuboTV also raised its guidance for the full year.
FuboTV is currently exchanging hands at £15.04 per share versus a year-to-date high £37.07 per share in the first week of February. In comparison, the stock had started the year at a per-share price of £17.15. At the time of writing, FuboTV is valued at £2.07 billion.
FuboTV added 43,000 net new subscribers in Q1
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FuboTV said that its revenue in the fiscal first quarter posted an over 100% growth to £84.82 million. Analysts, on the other hand, had called for a lower £73.62 million of quarterly revenue. Its net loss in Q1 attributed to controlling interest stood at £49.67 million.
The American streaming television service had 590,000 subscribers at the end of the recent quarter, compared to 287,000 last year. FuboTV’s advertising revenue jumped 206% in Q1 on a year over year basis.
Following the earnings report and future guidance, Wedbush analyst Michael Pachter said he saw more than 200% upside as he rated FuboTV at ‘Buy’ on Wednesday with a price target of £37.50.
The NYSE-listed firm added 43,000 net new subscribers in the first quarter that marked the first time for FuboTV to report sequential growth in revenue and subscriptions. In separate news from the United States, Electronic Arts also published its quarterly earnings report on Tuesday, after the bell.
Guidance for the future
FuboTV now forecasts over 100% growth in revenue this year versus 78% expected earlier. Subscriptions, it added, are likely to grow by more than 50% in fiscal 2021, compared to its previous guidance of a 40% increase.
For fiscal Q2, the New York-based company expects up to £86.31 million of revenue and 600,000 to 605,000 subscribers. Inc comparison, analysts are predicting £69.33 million of revenue in the second quarter.
Commenting on the earnings report, CEO David Gandler said:
“We believe customers are choosing FuboTV enticed by superior value, our year-round content offerings, and a customer-centric innovative consumer product experience relative to legacy pay TV. As this shift accelerates, our differentiation in the marketplace – sports-focused programming, a tech-first and data-driven user experience and the planned integration of wagering and interactivity – firmly positions the company for strong long-term growth.”