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FuboTV Analysts Break Down Streaming Stock's Q1 Results: Revenue, Subscribers, Sports Betting And More

May 12, 2021 3:51 pm
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FuboTV Analysts Break Down Streaming Stock's Q1 Results: Revenue, Subscribers, Sports Betting And More

FuboTV Inc (NYSE:FUBO) shares were rallying Wednesday in the wake of the streaming platform's first-quarter report.

Here's what the sell side has to say. 

The FuboTv Analysts: Roth Capital Partners analyst Darren Aftahi has a Buy rating on shares of FuboTV and lowered the price target from $55 to $42.

Needham analyst Laura Martin has a Buy rating and $60 price target.

Takeaways On FuboTV's Q1: FuboTV reported strong subscriber and revenue figures for the first quarter, which typically shows a sequential drop, Roth Capital's Aftahi said in a note. 

“Both revenue segments accelerated on the margin, which helped revenue improve q/q despite season trends,” the analyst said. 

Aftahi lowered the price target on Fubo and mentioned higher costs in the first quarter, which increased OpEx for the company.

Needham's Martin said FuboTV has "overdelivered" on revenue, subscriptions and average revenue per user guidance in every quarter since going public. 

FuboTV has beaten and raised its subscriber and revenue guidance in every quarter since going public, she said. 

“We believe that ad revenue strength was primarily attributable to more ad units to sell in 1Q thanks to 43,500 sub adds plus 8% more viewing hours per subscriber and higher ad load sell outs at 65% in 1Q we estimate.”

Related Link: fuboTV Shares Pop On Caesars Partnership, Access To Additonal States For Sports Betting

What’s Next For FuboTV: FuboTV raised its guidance for the full fiscal year, which was a key point highlighted by both analysts. 

“Both 2Q/FY21 subs/revenue were guided above expectations, as engagement and retention improvements suggest higher quality subs,” said Roth's Aftahi. 

The second half of the fiscal year is the strong part of FuboTV's business, the analyst said, adding that the company has now raised its guidance for that period, with sports gaming and sportsbook launches ahead that may not be factored in. 

Needham's Martin said FuboTV's 2.5x EV/revenue multiple for the fiscal year 2022 estimate makes it the least expensive CTV company Needham covers.

“We believe that FUBO can reach three million US subs out of the 78 million linear TV big bundle subs,” the analyst said. 

The timeline of the sports betting vertical for fuboTV has accelerated, with a free-to =-play game to launch expected in the third quarter of fiscal 2021 and a wagering app launch expected in the fourth quarter of fiscal 2021, versus a previous two-year estimate. 

FUBO Price Action: Shares of fuboTV were up 9.92% at $19.29 at last check. 

Disclosure: Author is long shares of FUBO.

Photo courtesy of FuboTV. 

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