FuboTV Inc (NYSE:FUBO) shares are trading higher after the company reported Q3 FY23 results.
Sales grew 43% Y/Y to $311.8 million, beating the consensus of $286.2 million.
The company’s gross margin stood at 6%, an 884 bps Y/Y improvement. Also, it witnessed a 619 bps reduction in subscriber-related expenses (SRE) as a percentage of revenue to 89%, on continued progress in optimizing content costs.
Adjusted EPS loss of $(0.22) beat the consensus loss of $(0.32).
North America Streaming: Revenue grew 43% Y/Y to $313 million as paid subscribers grew 20% Y/Y to an all-time high of 1.477 million. Average revenue per user (ARPU) rose 17% Y/Y to $83.51 in Q3.
Rest of the World Streaming: Revenue was $8.4 million, a 45% Y/Y jump, with paid subscribers growth of 15% Y/Y.
FuboTV ended the quarter with $266 million in cash, cash equivalents, and restricted cash.
Outlook: Fubo raised FY23 revenue guidance to $1.319 billion – $1.324 from $1.260 billion – $1.280 billion vs. $1.3 billion estimate.
The company boosted the FY23 paid subscribers outlook to 1.584 million – 1.599 million from 1.565 million – 1.585 million.
Fubo says it is on track toward its 2025 positive cash flow goal.
Price Action: FUBO shares were up 4% at $2.85 on the last check Friday.
