Strong Q4 reported as fuboTV sees volatile share trading | Major Businesses | Business
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After releasing a report that it expects to beat the Street and exceed prior guidance in a record-breaking 2020, sports-first live TV streaming platform fuboTV has seen a recovery in its stock price after major falls in late December 2020 after selling of its stock from key investors.
fuboTV Platform 24March 2020
In a preliminary fourth quarter revenue and subscriber results statement, fuboTV announced that Q4 total revenue is expected to be between $94-$98 million, what would represent a 77% to 84% increase year-over-year. Prior guidance was $80-$85 million. Paid subscribers at year-end are expected to exceed 545,000, an increase of more than 72% year-over-year. Prior guidance was 500,000-510,000 subscribers.

“fuboTV’s strong preliminary fourth quarter 2020 results exceeded what was already expected to be a record year for the company, and demonstrate continued consumer excitement for the company's live TV streaming offering,” said David Gandler, co-founder and CEO, fuboTV commenting on the statement. “In 2021, we will continue to be laser focused on executing our growth strategies, which include continuing to grow advertising revenues, working to implement sports wagering into our product and further establishing fuboTV as a leader in sports and live streaming.”

Q4 metrics compare the combined company of fuboTV and FaceBank Group, which acquired fuboTV in March 2020, to the legacy fuboTV company before changing ownership. The statement follows a third quarter reporting record financial performance with solid growth in revenue, subscription and engagement, and the announcement of a strategy that would add sports wagering services to existing online video offers. This was first realised with the acquisition in December 2020 And expressing confidence that its growth opportunities were numerous, the acquisition of Balto Sports, a Y Combinator company that develops tools for users to organise and play fantasy sports games.

Yet despite all of this, fuboTV’s share trading has been volatile. Major investors in the firm include Disney, ViacomCBS, AMC Networks and Sky and the big share slide began on 22 December 2020 when the stock lost around 60% of its value in just two weeks, due to the expiration of an insider lockup period on 30 December which released 88 million shares. Leading US financial analysts believe the share price fall has now bottomed out. The publication of the fourth quarter trading statement provoked a strong recovery