FuboTV stock jumps more than 10% after sports-focused streamer predicts sales to double in 2021

FuboTV Inc. easily exceeded second-quarter sales growth expectations and executives upped their forecast, calling for more than doubling revenues for the full year, sending shares more than 10% higher in trading after the regular hours Tuesday.

Fubo FUBO,
+ 2.54%
reported a second-quarter loss of $ 94.9 million, or 68 cents per share, on sales of $ 130.9 million, up from $ 44.2 million a year ago. After adjusting for stock-based compensation and other costs, the company reported losses of 38 cents per share, an improvement from $ 2.46 per share in the last year’s quarter.

Analysts on average expected adjusted losses of 49 cents per share on earnings of $ 121.4 million, according to FactSet, after the company forecast sales of $ 120 million to $ 122 million. Shares climbed more than 10% in the extended session, after closing with a gain of 2.5% to $ 28.64.

In response, Fubo executives increased their full-year revenue forecast from $ 560 million to $ 570 million, after previously reporting between $ 520 million and $ 530 million; FuboTV reported 2020 revenue of $ 268.8 million. After ending the quarter with 681,721 subscribers, Fubo executives predicted the total would reach 900,000 by the end of the year, increasing forecast from 910,000 to 920,000, from 83,000 to 850,000 previously.

For the third quarter, executives expect the number of subscribers to exceed 800,000, leading from 810,000 to 820,000 by the end of the period, leading to quarterly revenues of $ 140 to 144 million. Analysts on average expected third-quarter revenue of $ 128.5 million, according to FactSet.

Fubo offers a sports-focused streaming service and hopes to launch a sports betting offering that will combine the gaming options with the live events it broadcasts. Executives said on Tuesday the company was on track to launch the offering before the end of the year, and offered a preview.

“We’re excited to preview for the first time today how the Fubo Sportsbook app will be immediately and in real time updated with relevant bets based on what the user is watching, even if they change channels to a new game, ”the executives wrote. in a letter to investors on Tuesday. “This invisible connection between streaming video and our mobile betting app is a feature that we believe only FuboTV can bring to market.”

After going public at the end of last year, Fubo stock soared towards the end of last year, but has calmed down in recent times while valuing the company at around $ 4 billion. Shares are up 186.4% in the past year, but down 37.5% in the past six months as the S&P 500 SPX Index,
+ 0.10%
gained 31.9% and 13.4% during those periods.

About Virginia Ahn

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