Fubotv Fourth Quarter and Full Year 2020 Earnings Webcast March 2
Total Page：16
File Type：pdf, Size：1020Kb
fuboTV Fourth Quarter and Full Year 2020 Earnings Webcast March 2, 2021 fuboTV - Fourth Quarter and Full Year 2020 Earnings Webcast, March 2, 2021 C O R P O R A T E P A R T I C I P A N T S Brinlea Johnson, The Blueshirt Group David Gandler, Co-Founder, Chief Executive Officer & Director Simone Nardi, Chief Financial Officer C O N F E R E N C E C A L L P A R T I C I P A N T S Laura Martin, Needham & Company Kevin Rippey, Evercore ISI Jason Helfstein, Oppenheimer Daniel Salmon, BMO Capital Markets Darren Aftahi, ROTH Capital Partners David Beckel, Berenberg James Goss, Barrington Research Associates P R E S E N T A T I O N Brinlea Johnson Thank you for joining us to discuss fuboTV's Fourth Quarter and Full Year 2020. With me today is David Gandler, CEO and Co-Founder of fubo; and Simone Nardi, CFO of fubo. Before we begin, let me quickly review the format of today's presentation. David is going to start with some brief remarks on the quarter and fubo's strategy, and Simone will cover the financials and guidance. Then I'm going to turn the call over to the analysts to dig into Q&A. Before we begin, I'd like to remind everyone that this call may contain forward-looking statements, including statements about revenue, non-GAAP net loss and Adjusted EBITDA, subscribers, recent acquisitions, development of a wagering offering, and other non-historical statements as further described in our press release. These forward-looking statements are subject to certain risks, uncertainties and assumptions, including those related to fubo's growth, evolution of our industry, product development and success; our ability to realize the anticipated benefits of recent acquisitions; our access to capital and fundraising prospects to fund our ongoing operations; our ability to capitalize on market trends and develop and market a wagering offering; and general economic and business conditions such as effects of industry, market, economic, political or regulatory conditions, future exchange and interest rates and 1 ViaVid has made considerable efforts to provide an accurate transcription. There may be material errors, omissions, or inaccuracies in the reporting of the substance of the conference call. This transcript is being made available for information purposes only. 1-888-562-0262 1-604-929-1352 www.viavid.com fuboTV - Fourth Quarter and Full Year 2020 Earnings Webcast, March 2, 2021 changes in taxes and other laws, regulations, rates and policies, including the impact of COVID-19 on the broader market. These statements reflect our current expectations based on our beliefs, assumptions and information currently available to us. Although we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Descriptions of these and other risks that could cause actual results to differ materially from these forward-looking statements are discussed in our reports filed with the SEC, including our most recent quarterly and annual reports and our press release that was issued this afternoon. During the call, we also refer to certain non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. Reconciliations with the most comparable GAAP measures are also available in the press release, which is available at ir.fubo.tv. With that, I'll turn it over to David. David Gandler Thank you, Brinlea, and thank you all for joining us today. I am very excited to present to you our Q4 and full year 2020 results. The Company has exceeded previously raised guidance with solid growth in revenue, subscription and viewership. Our mission is to provide the world's most thrilling sports-first live TV experience with the greatest breadth of premium content, interactivity and wagering. We believe fubo sits firmly at the intersection of three mega trends: the secular decline of traditional television; the shift of TV ad dollars to connected devices; and online sports wagering, a market opportunity we believe to be complementary to our sports-first live TV streaming platform. Fourth quarter revenues were up 98% year-over-year, exceeding for the first time $100 million of quarterly revenue. For those who are new to fuboTV, top line revenue consists of two primary revenue streams: subscription revenue, which was up 91% year-over-year from $47.9 million to $91.4 million; and advertising revenue, which was up 157% year-over-year from $5.1 million to $13.1 million. Paid subscribers at quarter end totaled 547,880, and that's an increase of 73% year-over-year. Given our sports-first differentiated position, we experienced continued momentum from the start of the fall sports calendar, and that was back in Q3, and throughout Q4, adding an impressive 92,800 net additions in the fourth quarter, and that's up 237% from the prior year. Sports draws premium audiences, and advertisers are increasingly coming to us to reach highly engaged viewers. For the full year, advertising revenue grew to represent 11% of total revenues compared to 8% in the prior year, helping to contribute to a record adjusted contribution margin of 11.7% in the fourth quarter, and that's up 1,100 basis points from the prior year. We believe our sports-focused market position will help to further grow our business, and our KPIs continue to improve. In 2020, average revenue per user per month increased 17% year-over-year to $62.84, and annualized ARPU increased by $109 to $754 per customer per year. And within that annualized ARPU of $754, we grew advertising ARPU to $81.76 per customer per year, and that's an increase of 54% year-over-year, largely driven by an increase in per user engagement and investments in our advertising operations. Our customers continue to be our number one focus, and we continue to invest in our proprietary data to surface relevant content for our subscribers, driving engagement and retention. Our customers streamed over 0.5 billion hours in 2020. That's an 82% increase year-over-year. Equally noteworthy, customers 2 ViaVid has made considerable efforts to provide an accurate transcription. There may be material errors, omissions, or inaccuracies in the reporting of the substance of the conference call. This transcript is being made available for information purposes only. 1-888-562-0262 1-604-929-1352 www.viavid.com fuboTV - Fourth Quarter and Full Year 2020 Earnings Webcast, March 2, 2021 streamed an average of 7.2 hours of fubo per day, indicating that we own significant time share in households. Over the long term, we believe this level of daily engagement will provide numerous opportunities for us to further expand monetization on the platform. We continue to invest in our product and into expanding access to more streaming devices such as Samsung TV and Xbox. In fact, churn improved 56 basis points year-over-year in the fourth quarter. And for the full year, churn improved over 200 basis points over the prior year. Only one quarter ago, I announced our intent to expand fubo into the online sports wagering market, and I am very pleased to finally report that we have officially closed our acquisition of sports betting and interactive gaming company, Vigtory. This acquisition enables us to accelerate the launch of our owned and operated sports betting platform called fubo Sportsbook. We've secured our first market access deal for our Sportsbook in Iowa through Casino Queen. And in connection with our launch in Iowa, we are also excited to announce agreements with Major League Baseball and the NBA to become authorized gaming operators for each league. These agreements will provide access to official data and the rights to MLB and NBA league marks and logos within the fubo sports app once it's rolled out. In addition to our Sportsbook, free-to-play predictive games mark the beginning of fubo's innovative gaming road map. We believe it will enhance the sports streaming experience while also providing a bridge between our video product and our Sportsbook. And we expect the integration of gaming with our expansive live sports coverage will create a flywheel that improves engagement and retention, and consequently drives advertising revenue. In the third quarter of 2021, we plan to launch free gaming, first to fuboTV subscribers and then later to all consumers. And in the fourth quarter of this year, we expect to launch the fubo Sportsbook. We don't see wagering simply as an add-on product to fuboTV. Instead, we believe there are significant synergies between streaming consumers who enjoy wagering and wagering customers who enjoy streaming live sports. In 2021 and beyond, we are laser-focused on bringing to life our vision of a streaming platform that transcends the industry's current virtual MVPD model and experience. In conclusion, we are very proud of our 2020 results. And as you've seen from our shareholder letter, we are raising our 2021 guidance we laid out for you last quarter. The team is focused on delivering the best streaming experience to our customers, which will drive top line growth. And the power of our model will enable us to further our progress on our path to profitability. In 2021, we will continue to expand the breadth of our sports programming while introducing interactivity and wagering to further differentiate our service in the marketplace. Now I'll pass it over to Simone to discuss our 2020 financial highlights and guidance for 2021.