fuboTV Inc. Q3 FY2025 earnings call

• fubo ended Q3 with 1,630,000 paid subscribers in North America and $369 million in total revenue, with second consecutive quarter of positive adjusted EBITDA. Trial starts increased, churn declined nearly 50% YoY, and marketing spend was reduced during a competitive sports quarter.
• Product innovations include the fubo channel store, fubo Sports skinny service, and pay-per-view with double-digit sales growth in October. Features like multiview, game highlights, etc., enhance engagement.
• The combination with Hulu+ Live TV forms a large live TV streaming service in America with ~6 million combined subscribers. Focus is on programming efficiencies, ad tech uplift, marketing at scale, and deeper personalization.

In North America, fubo ended the quarter with 1,630,000 paid subscribers and total revenue of $368.6 million, a 2.3% year-over-year decrease. Advertising revenue in North America totaled $25 million, down 7% year-over-year. In Rest of World, revenue was $8.6 million, and there were 342,000 paid subscribers. North America is the major segment contributing the majority of total revenue.

Post-combination, focus on programming efficiencies, ad tech uplift, marketing at scale, and deeper personalization to grow subscriber base and achieve profitability goals.

Forward-looking statements subject to risks, uncertainties, and assumptions. Actual results could differ from expectations. Factors discussed in earnings release, letter to shareholders, and SEC filings.

Q: About advertising content removal and new ad relationship with Disney.

A: John discussed content removal impacts (Univision, residual Maximum Effort Channel revenue, political comp), and David mentioned Disney will take over ad sales and expect strong results as inventory integrates into Disney's ecosystem.

Q: Differentiating factors of full services.

A: No overlapping customers with Hulu Live. Hulu has general entertainment with sports, fubo is sports-focused, providing optionality with different price points and programming.

Q: Marketing cost reduction.

A: 68% net adds YoY, marketing spend as % of revenue down 21%, leveraging AI and multiple offers like fubo channel store, skinny bundle, etc.

Q: Q3 marketing budget allocation.

A: Focus on scaling profitably, managing different packages in real time to drive top and bottom line.

Q: Size comparison with Hulu+ Live.

A: fubo will drive growth leveraging ESPN ecosystem, ad sales with Disney, programming efficiencies, and international expansion with Molotov migration and Disney+ potential.

Q: AI use for personalization.

A: Using AI to recommend programming and highlight sports moments for better user engagement.

Q: Rest of world strategy.

A: Focus on migrating Molotov, partnering with Disney, aiming to be world's largest live TV provider with international expansion.

Q: 4Q subscriber strength and synergies.

A: 4Q subscriber strength across all packaging, moving with urgency on ad and content synergies, with confidence in content expense savings and ad CPM upside.