World News – CA – fuboTV Announces Third Quarter 2020 Results

NEW YORK – (BUSINESS WIRE) – fuboTV Inc (NYSE: FUBO), the premier sports live TV platform, today announced its unaudited financial results for the third quarter ending September 30, 2020 The company, which closed its public offering on October 13, 2020, achieved the strongest quarter in its history and surpassed previous directives with strong growth in revenue, subscriptions and engagement.

(Note: The company cites its key metrics year on year, given the seasonality of sports content since the legacy FaceBank business did not report any revenue in the third quarter of 2020, the comparisons to the previous year shown in this document refer to preliminary 2019 results for fuboTV’s business The Unified Old FaceBank, unless otherwise noted)

“The third quarter was the strongest quarter in fuboTV history, surpassing targets on all our key metrics: Sign-up revenue grew 64% year-over-year, advertising revenue grew 153% year-over-year, and we ended that quarter all the time,” said David Gandler, co-founder. And CEO of fuboTV, “455,000 Paid Subscribers” “The intense sports calendar, busy news cycle and Hollywood entertainment season in the fall provide many viewing options for customers We have continued to develop fuboTV’s premium personal viewing experience with the launch of new product features and new programs including Disney Media Networks (ABC, ESPN, and many more), MLB, NBC News Now, and more  »

Added Edgar Bronfman Jr, CEO of fuboTV, “Our successful public show in October demonstrated confidence in fuboTV’s strategy, and investor excitement continues to grow. We believe fuboTV is firmly located at the intersection of three major trends: the secular decline of traditional TV viewers, and the shift of TV ad dollars into Connected TVs and online sports betting, a market we intend to enter as a result, we believe our growth opportunities are numerous. Our optimism for the future of fuboTV and live TV broadcasting has never been stronger.  »

In a letter issued to shareholders today, Gandler and Bronfmann described in more detail the results of the recently completed third quarter and business in general The full shareholder letter below

Gandler and CFO Simon Nardi will be hosting a live video webinar today at 5:30 pm ET to provide brief notes followed by Q&A The live webinar will be available on the events page of fuboTV’s investor relations website Investors can pre-submit questions to ir @ fubo TV with Email address « Q3 2020 Earnings » re-archived will be available on fuboTV website after the webinar. Participants must join the webinar 10 minutes before the event to ensure they are online prior to the event

We are excited to share the unaudited financial results for the third quarter of 2020 from fuboTV and recent business updates with you today The third quarter was the largest in our company’s history, and closed before our October public offering on the New York Stock Exchange We encourage you to read our full set of financial statements and SEC filings, and subscribe to Email alerts, in the investor relations section of our website at IR FobotTV

fuboTV is the leading live TV broadcasting platform in sports that provides subscribers with access to tens of thousands of live sporting events annually in addition to leading news and entertainment content We broadcast 90% of NFL games nationwide with the majority of the country receiving all games (aired on ESPN) / ABC, CBS, FOX, NBC, and NFL, plus live scenes of national and regional action on NFL RedZone) and has strong coverage of other nationally televised leagues: 100% NHL (NBC, NBCSN, NHL Network), 88% MLB ( ESPN, Fox / FS1, MLB Network) and nearly 70% of NBA (ESPN / ABC, NBA TV) We are the only vMVPD to broadcast in 4K, including 11 Thursday’s football (FOX) matches. Season and Last World Championship of 2020 (FOX) fuboTV also has more Regional Sports Networks (RSN) in its basic package than any other live TV platform.

At the core of our offering, our data and technology platform optimized for live TV and sports viewing Our platform has enabled us to regularly offer new features and functions to our subscribers and advertising partners For example, we were the first multi-channel virtual video programming (vMVPD) distributor for 4K broadcasting We believe fuboTV is also The only vMVPD where customers can watch four live broadcasts simultaneously, with the recently updated Multiview feature on Apple TV, 4K and Multiview particularly complement sports viewing, which is why we believe fuboTV offers a premium, more personalized and high-quality viewing experience for fans. Sports

Our financial model is driven by strong unit economies We expect margin improvement to continue over time, with the help of a number of initiatives.This includes the growth of ads on our platform along with strong attachment rates for value-added services, such as DVR cloud storage and the ability to stream to multiple devices

We believe fuboTV is firmly located at the intersection of three major industry trends: the secular decline of traditional TV viewers, the shift of TV ad dollars into connected televisions and online sports betting Our subscribers ‘strong growth indicates that consumers are cutting the rope faster than ever, and viewers’ engagement has resulted in Our growing sales of fuboTV ads

We said earlier that we see the online betting space – a market that is expected to reach $ 155 billion by 2024 according to Zion market research – as a complement to our first sports live TV platform. We believe there is an opportunity to flywheel with video content and interaction given that it is a substitution product. Our cable TV focuses on sports, we believe that a large portion of our subscribers will be interested in betting online, which creates a unique opportunity to increase subscriber engagement and open additional revenue opportunities. Simply we expect betting to lead to more viewing, and this increased engagement will generate income. Higher than ads, improve subscriber retention, and reduce subscriber acquisition costs

Therefore, we are excited to announce that fuboTV intends to expand into the online sports betting market. Our betting goal is to develop a new source of income for fuboTV, which we believe will be an important contributor to our business.

We expect to share more tactical details as appropriate and of course, we expect to continue increasing our subscriber count which will positively influence any decision we make regarding betting.

We believe fuboTV has an opportunity to combine our sports betting service with the live broadcasting package of leading live sports in addition to sports, we continue to grow our news and entertainment offerings We are excited to announce today new content agreements with Epix and Starz, and we will launch their premium entertainment channels on fuboTV before the end of the year This wide mix of content is the reason why consumers « come for exercise and stay for fun ».

We also moved fuboTV to 35,000 feet earlier this year, announced the closure of a first-of-its-kind partnership with satellite internet service provider Viasat that will make fuboTV the first vMVPD to broadcast live content to all passengers – for free – on U-o-o-satellite-enabled flights Viasat today, we are excited to announce that we will provide fubo Sports Network to JetBlue customers while fubo Sports Network is offered for free, JetBlue customers will also be able to sign up for a fuboTV subscription and start streaming immediately

Keep our key metrics in mind year-on-year due to seasonality of sports content Sports content has historically contributed to increased subscription revenues and subscriber additions in the third and fourth quarters, and slowed growth in the first and second quarters, for example, in 2018 and 2019, such as total additions earned during the second half of The year is 60% and 65% of total paid subscriber additions for the whole year, respectively, to take advantage of higher levels of purchase intent in the second half of the year, we have historically incurred the majority of our sales and marketing expenses in these periods Please note that the old FaceBank business amounted to $ 5 8 million Revenue in the third quarter of 2019, entirely from FaceBank AG, a company sold in July 2020, and no revenue recorded in the third quarter of 2020; The prior year comparisons shown below refer to preliminary results for 2019

Looking to the future, as mentioned in recent shareholder letters, we continue to focus on driving both profit growth and progress on our path towards profitability.Furthermore, we believe fuboTV’s differentiation in the market – sports-focused programming and technology-first user experience – puts The company aggressively to achieve strong growth

In recent months, sport has returned despite the ongoing pandemic. The NFL has continued to play and college football, including the Pac-12 and Big 10, as well as soccer has begun to return. Sports fans have also enjoyed the 2020 World Championships – which was played in Slated for October These events have increased subscriber growth, viewership, and ad revenue

As a result, we are raising our guidance for the fourth quarter We expect fourth-quarter revenue to be $ 80-85 million, up 51% to 60% year over year * We also expect to end the fourth quarter with 500000-510000 paid subscribers, an increase of 58% to 62% year over year*

Full-year 2020 revenue is projected to be $ 244-248 million, up over 65% YoY *

Full-year 2021 revenue is projected to be $ 415-435 million, up over 70% year-on-year *

As mentioned earlier, we are excited about the growth and revenue opportunities related to online sports betting Please note, however, that we have not included in our guidelines any predictions related to online sports betting.

* Metrics compare the combined company (fuboTV Inc and FaceBank Group, Inc) in 2020 to the legacy fuboTV (“pre-merger fuboTV”) in 2019

The third quarter was the strongest year in fuboTV history, surpassing targets on all of our key metrics: subscription revenue grew 64% year over year, advertising revenue grew 153% year over year, and we finished the quarter with an all-time high of 455,000 paid subscribers that offers calendar The big sportsman, the busy news cycle and the Hollywood entertainment season in the fall Many viewing options for customers fuboTV continued to replicate the premium personal viewing experience with the launch of new product features and new programming

The outlook for the fourth quarter is also strong. Growth in ads on our platform along with strong connectivity rates for value-added services, such as DVR cloud storage and the ability to broadcast on multiple devices, continues to improve margins furthermore, we believe fuboTV is differentiating in the market – programming Sports-focused and technology-first user experience – the company is firmly positioned for long-term growth We are also excited about potential growth and revenue opportunities around the intended expansion of online sports betting.

Our successful October public offering demonstrated confidence in fuboTV’s strategy, and excitement of investors continued to grow.Our optimism about the future of fuboTV and the live TV business has never been stronger.

FuboTV CEO David Gandler and Chief Financial Officer Simone Nardi will host a live video webinar today at 5:30 p.m. ET to provide brief notes followed by Q&A The live webinar will be available on the events page of fuboTV’s investor relations website An archived will be available on fuboTV On the web After the webinar, participants must join the webinar 10 minutes before the event to ensure they are online before the event

FuboTV intends to use its website as a disclosure channel and investors are encouraged to refer to it, in addition to press releases and SEC filings encouraging the company to read the full set of financial statements, including the merging company’s pro forma financial statements, and related disclosures, as presented in Form 10 -Q for the quarter ending September 30, 2020, to be submitted this week

fuboTV (NYSE: FUBO) is the premier sports live TV broadcasting platform that gives subscribers access to tens of thousands of live sporting events annually as well as news and entertainment content flagship fuboTV’s core package, fubo Standard, features a wide mix of 100 channels, including In it 43 of Nielsen’s Top 50 ranked networks across Sports, News and Entertainment (Primetime A18-49)

By continually innovating to give subscribers a premium viewing experience they couldn’t find with cable TV, fuboTV is regularly on the market with new product features and is the first virtual MVPD to broadcast in 4K

FuboTV merged with FaceBank Group in April 2020 to create a leading digital entertainment company, combining fuboTV’s live consumer TV broadcasting platform for wire cutters with FaceBank’s technology-driven IP in sports, movies and live shows

This letter contains forward-looking statements of fuboTV Inc. (“fuboTV”) that involve significant risks and uncertainties. All statements in this press release are forward-looking statements within the meaning of the 1995 Securities Litigation Reform Act the words “can,” “will,” “Planning,” “intent,” “expectation,” “approximate,” “expectation,” “possibility,” or negativity from these or other similar expressions aiming to define the following – forward-looking statements, although not all forward-looking statements are included On these keywords the actual results or events may differ materially from the plans, intentions and expectations disclosed in the forward-looking statements provided by fuboTV due to a number of important factors, including (1) risks related to the ability to realize the expected benefits from the merger, (2) Risks related to the combined entity’s access to capital and the prospects for raising funds to fund its ongoing operations and its ability to continue as a « continuous activity », (3) the risks related to diverting management’s attention from fuboTV’s ongoing business operations to address integration and fundraising efforts, (4) risks Related to our ability to successfully develop and market a sports betting offer, and (5) other business impacts, including industry, market, economic, political or regulatory effects, exchange rates and future interest, and changes in laws, regulations, rates, tax policies, etc., including Impact of COVID-19 on the Wider Market Additional risks that may cause actual results to differ materially from those expressed or implied through these forward-looking statements are discussed in the company’s periodic filings with the Securities and Exchange Commission, and we encourage you to read these risks in detail. Forward-looking statements in this press release FuboTV’s views as of the date of this press release fuboTV anticipates that subsequent events and developments will change its views. However, while it may choose to update these forward-looking statements at some point in the future, it specifically disclaims any An obligation to do so therefore, you must not rely on these forward-looking statements as representing the opinions of fuboTV as of any date subsequent to the date of this letter

Total subscribers who completed registration with fuboTV, activated a payment method (reflecting only one user paying per plan), from which fuboTV collected payments in the month ending in the relevant period

Monthly Active Users (MAU) refers to the total number of paid subscribers who have consumed content for more than 10 seconds in the 30 days prior to the end of the indicated period.

Content hours are defined as the sum of total hours for content watched on fuboTV for a given period

Content hours per MAU denotes the total hours of content served by MAUs in a given month divided by the number of MAUs in the period

ARPU (Average Revenue Per User) is a fuboTV measure defined as the total subscriber revenue collected in the period (subscriber and advertising revenue excluding other revenue) divided by the average daily paid subscribers in that period divided by the number of months in the period

Average cost per user (ACPU) reflects the variable cost of goods sold per user which is defined as a subscriber-related expense minus the minimum collateral disbursed, payment processing for deferred revenue, IAB fees for deferred revenue and other expenses related to subscribers in a given period, divided by average Daily subscribers in the period divided by the number of months of the period

Adjusted Contribution Margin (ACM) is a non-GAAP number to measure variable costs versus subscriber revenue. ACM is calculated by subtracting the ACPU from the ARPU

Our non-GAAP financial standards have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analyzing our results under GAAP. There are a number of limitations related to the use of these non-GAAP financial measures against the closest equivalent Generally accepted accounting principles first, these non-GAAP financial measures are not a substitute for GAAP revenue Second, these non-GAAP financial measures may not provide information that is directly comparable to the procedures offered by other companies in our industry, where those may count. Other companies have non-GAAP financial measures differently

The following tables reconcile the most directly comparable financial measure with generally accepted non-accounting financial standards.

Settlement of revenue to reservations on non-GAAP statutes and settlement of subscriber-related expenses with the unchanged GAAP cost of goods sold

Adjustment of operating expenses with non-GAAP-compliant adjusted operating expenses and reconciliation of net loss with GAAP adjusted EBITDA

fuboTV