FuboTV Shares Plummet 21% Amid Q1 Subscriber Decline Fears

FuboTV Inc. (NYSE: FUBO) shares took a nosedive on Friday, plummeting 21% after the company reported earnings for the fourth quarter of 2024. The live TV streaming platform missed analyst revenue estimates and projected a subscriber decline in the first quarter of 2025, sending investors into a frenzy.

FuboTV's revenue for the quarter grew 8.1% year over year to $443.277 million, falling short of the analyst consensus estimate of $445.798 million. Adjusted EPS loss of 2 cents beat the analyst consensus estimate of 18 cents loss. However, the company's adjusted EBITDA margin loss stood at (2.0)% versus (12.2)% Y/Y.

North America Streaming revenue grew 8% Y/Y to $433.8 million, as paid subscribers grew 6.2% Y/Y to 1.64 million. Average revenue per user (ARPU) rose 1.4% Y/Y to $87.90. Rest of the World Streaming revenue was $9.4 million, a 12.1% Y/Y jump, with a paid subscriber decline of 10.9% Y/Y to 362,000. ARPU grew by 24.8% Y/Y to $8.50.



As of December 31, 2024, FuboTV held $167.6 million in cash and equivalents. Free Cash Flow in the fourth quarter was $16.3 million, an improvement of $22.1 million from a year ago.

FuboTV expects first-quarter North American revenue of $400 million–$410 million and ROW revenue of $7.5 million-$8.5 million versus consensus of $440.24 billion consensus estimate. The company projects 1.430 million to 1.460 million total subscribers by Q1, representing a 4% YoY decline at the midpoint. This outlook reflects the potential subscriber impact of the company's recent non-renewal with TelevisaUnivision.

FuboTV's stock price has been volatile in recent months, with the company's strategic focus on profitability and content expansion, including the planned business combination with Hulu + Live TV, addressing the projected subscriber decline and maintaining market competitiveness. However, the recent earnings report and subscriber projections have raised concerns about the company's ability to sustain its growth trajectory.

Investors will be closely watching FuboTV's progress in the coming quarters to see if the company can successfully navigate the challenges posed by content partnership changes and subscriber acquisition and retention efforts. The live TV streaming market remains competitive, and FuboTV's ability to differentiate itself through innovative features and strategic content expansion will be crucial for its long-term success.