FuboTV Shares Plunge 20% Following Weak Revenue Guidance

NEW YORK, NY – FuboTV Inc. (NYSE: FUBO) shares tumbled 20% in midday trading Friday after the company forecasted lower-than-expected revenue for the first quarter and predicted a decline in its subscriber base.

The streaming service provider projected first-quarter revenues between $407.5 million and $418.5 million, significantly below the average analyst estimate of $436.9 million. FuboTV forecasted its subscriber base will range from 1.43 million to 1.46 million by the end of the current quarter, marking a potential 4% drop compared to the same period last year.

Additionally, FuboTV reported a significant decline in its international paid subscribers, which plummeted nearly 11% year-over-year in the fourth quarter, now totaling 362,000. The disappointing outlook casts a shadow on the company’s overall performance and growth strategy moving forward.

In its fourth-quarter report, FuboTV announced an adjusted loss of $0.02 per share, outperforming analysts’ predictions of a $0.11 loss. However, revenue for the quarter was $431.82 million, falling short of forecasts by approximately $13 million and reflecting a 7.8% year-over-year increase.

“Notable achievements in 2024 included the launch of standalone sports and entertainment skinny bundles as part of our mission to be a Super Aggregator, and expanded availability of our market-first user-configurable Multiview product to Roku devices,” said FuboTV CEO David Gandler in a statement. Despite the optimism in the company’s initiatives, the market’s response was subdued.

FuboTV’s future dependency on maintaining and growing its subscriber base remains a challenge, particularly in a competitive streaming landscape where consumer preferences frequently shift. Analysts suggest that the mixed results reflect broader concerns about FuboTV’s position in the rapidly evolving streaming market.

While there is inherent potential in FuboTV’s strategic moves towards a Super Aggregator model, investor confidence may hinge on the company’s ability to stabilize and grow its subscriber base in the coming quarters.