Editor’s note: This article was updated on May 6 to correct fuboTV’s previous revenue guidance for 2022.
Live streaming company fuboTV (NYSE:FUBO) is falling fast today after a disappointing first-quarter earnings call. FUBO stock is down more than 20% this morning as investors price in lower guidance for the company.
So, what else do you need to know about fuboTV today?
Well, on Thursday afternoon the New York-based streaming platform reported its fiscal first-quarter 2022 financial results. FuboTV announced a loss of 89 cents per share, wider than the consensus estimated 63-cent loss and the 55-cent loss reported in the same quarter last year. This marks the second straight quarter in which the company failed to meet earnings estimates.
In addition, the company lowered its outlook for full-year 2022. FuboTV now expects to earn between $1.02 billion and 1.03 billion this year in North America with about 1.475 million subscribers. This is down from previously announced 2022 revenue expectations of roughly $1.085 billion and a subscriber count of about 1.5 million.
This is likely what’s behind FUBO’s drop today. What else do you need to know about fuboTV lately?
FUBO Stock Plunges After Disappointing Earnings Figures
Despite its undershot revenue and subscriber estimates, the company did have some bright spots from its earnings call. The company ended Q1 with more than expected “rest of world” subscribers.
David Gandler, CEO of fuboTV, commented on the earnings call:
“In our first quarter, against a challenging macro environment, fuboTV achieved strong growth in subscribers and revenue, with North American subscriber growth of 81% year-over-year. In a less robust advertising market, however, we experienced some pressure on adjusted contribution margin due to slower ad sales growth than we had initially expected, with ad revenue up 81% year-over-year. Importantly, we strengthened fuboTV’s balance sheet, ending the quarter with over $456 million in cash.”
Unfortunately, investors clearly feel less confident over the company’s announcements. FUBO is down substantially today amid a number of analyst downgrades. Indeed, the stock has shed more than 70% year-to-date, and today’s earnings call will likely do little to reverse the trend.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.