Fubo’s Q3 2024 earnings showcase its continued growth, especially in North America, where it reached $377 million in revenue, a 21% year-over-year increase. This quarter saw a jump in its North American subscriber base to 1.613 million, a 9% rise over last year, alongside a boost in ARPU, now up 2.5% to $85.64. But beyond these promising numbers, Fubo is shaping its platform’s future by introducing its new Channels business, a model focused on profitability and customer retention, which could serve as a hedge against sports season churn while helping streamline its journey toward positive free cash flow by 2025.
Key Financial Highlights
- Revenue and Subscriber Growth: Fubo reported strong revenue growth in North America, reaching $377 million. Globally, the company now has 1.91 million subscribers, with North American subs up by 9% year-over-year but ROW (Rest of World) subscribers down 8.1%.
- Enhanced ARPU: North American ARPU increased to $85.64, a sign of Fubo’s success in driving value from its core users, aided by premium offerings that align with Fubo’s evolving Channels model.
- Bottom-Line Improvements: Fubo narrowed its net loss to $54.7 million from continuing operations and reported significant year-over-year improvements of $110.1 million in net loss and $98.8 million in Adjusted EBITDA.
Channels Business Drives Future Profitability
Launched in 2024, Fubo’s new Channels business allows users to subscribe to premium services like NBA League Pass, Paramount+ with Showtime, and FanDuel Sports Network without signing up for its full vMVPD plan. This new approach allows Fubo to secure revenue shares between 5% and 20%, depending on the partner, offering a more sustainable and higher-margin income stream without direct content production costs. For example, FanDuel Sports Network could yield a 10–15% revenue share, while NBA League Pass could deliver up to 20% because of its less-intensive production costs. Paramount+ with Showtime commands a smaller 5–10% share due to its bargaining power, yet remains a valuable partner for Fubo’s platform.
This shift allows Fubo to boost margins on core offerings—where margins traditionally hover around 2–3%—and retain seasonal sports users by offering access to year-round content like FAST channels and popular DTC services. This strategy reduces churn and ensures that downgrading customers who maintain third-party subscriptions are still counted as active subscribers, stabilizing subscriber metrics for Wall Street’s benefit.
Enhancing User Experience with Tech-Forward Features
Fubo is doubling down on creating a top-tier sports streaming experience with advanced features like its multiview functionality, now accessible on Roku devices. In August, the company introduced two new channel bundles, “Elite with Sports Plus” and “Deluxe,” aiming to provide a highly customizable viewing experience that caters directly to sports fans. By focusing on technological upgrades and variety, Fubo strengthens its appeal to premium subscribers, paving the way for a stickier customer base that continues to deliver higher ARPU.
The Path to Profitability
Fubo has reaffirmed its focus on achieving positive free cash flow in 2025. Its Q4 projections reflect this confidence, with anticipated North American revenue between $426 million and $446 million, an expected 9% year-over-year growth at the midpoint. This ongoing expansion and strategic alliances within the Channels business are expected to generate a more resilient and profitable revenue model that sets Fubo apart in the crowded streaming landscape.
“We are focused on delivering a frictionless and personalized streaming experience that American consumers expect,” said David Gandler, Fubo’s CEO and co-founder. Fubo’s fight for a fair marketplace exemplifies its dedication to consumer choice and competition, underscored by its recent antitrust lawsuit and successful injunction against the Disney-Fox-Warner Bros. Discovery joint venture. Edgar Bronfman Jr., executive chairman, noted, “Our strong Q3 2024 results reinforce our confidence in achieving profitability in 2025.”
Fubo’s entry into the Channels business and its ongoing commitment to enhanced user experiences place it on a promising trajectory toward profitability. In a continually evolving sector, Fubo’s strategic pivot to premium channels and innovative service packages could give it the leverage it needs to become a leading sports entertainment platform in the future of streaming.
