FuboTV has just released its preliminary Q4 results, and they are looking good for the company. Data shows that subscriber metrics and revenue are likely to exceed the original numbers that were issued, even though the company’s stock has fallen by 5% just recently.
Q4 Revenue Is Expected To Be More Than $210 Million
The expected revenue of FuboTV for the final quarter of 2021 is expected to be between $215 million and $220 million. Previous expectations stated that the company’s revenue is unlikely to pass $210 million. Thanks to the potential increase in revenue, the 2021 revenue is likely to increase from $622 million to $627 million. This indicates that the YOY increase is between 138% to 140%, which is quite a large number.
David Gandler, the CEO and co-founder of FuboTV, stated that the company is also happy to continue expanding globally, especially with the purchase of Molotov, which was finalized in December 2021. The company expects the quarter to result in $375 million of cash, restricted cash, and cash equivalents. It is worth noting that Q4 results do not include the Molotov acquisition.
One other major development that Fubo had in 2021 is the launch of Fubo Sportsbook. The first state where the sportsbook was launched was Iowa, and the second one was Arizona. Apart from the fact that bettors are able to wager on both collegiate and professional sports events, they are also able to stream them, thanks to FuboTV’s live TV streaming platform.
The number of subscribers at year-end is likely to go over 1.1 million, which is a YOY increase of 100%. Moreover, the number of paid subscribers increased 1.06 to 1.07 million. Q4 will be FuboTV’s 13th consecutive quarter in which churn improvements have been made as the YOY subscriber churn will decrease by 2%. As for the advertising revenue, it is expected to have a 90% YOY increase as it will top $25 million.
FuboTV’s Stocks Have Dropped Despite the Increased Revenue
The only hiccup that the company is experiencing at the moment is the drop in stock value. The most likely cause of the drop in stock value is the rise in rates. Goldman Sachs announced that it expects four hikes of interest rates in 2022.
The bank stated that inflation and the labor market near full employment are the reasons why the rates will go up. Jan Hatzius, a chief Wall Street economist, stated that Fed officials are now more sensitive to risks connected to inflation and less sensitive to downside growth risks because of the declining labor market slack. Apart from that, the preliminary Q4 results are showing massive growth for the company.