fuboTV Inc. (NYSE:FUBO) Q4 2022 Earnings Call Transcript

So, from our view, we are going to continue to take share. And the number €“ the 2025 number you just mentioned is something that I don’t think is very far off from our current pace. But I do anticipate that as the product continues to improve, we continue to focus on more profitable customers that we think that there will be some reacceleration over the course of that period.

David Gandler: Nick, I would maybe add off to it, as we look to the end of the year, we are going to be launching our unified platform. And I would just say that, I think it gives us some opportunity to more or less expand the funnel to then drive more subs coming through. And so you will, I think start to see that if not end of this year, timing-wise, very early next year, but probably sometime later this year.

John Janedis: Yes. The only other thing I would add is that if you look at our paid marketing numbers, you will see that we are continuing to acquire customers at the same level that we have acquired them 3 years ago, which is roughly a 1x to 1.5x first month’s ARPU. That number continues to fluctuate closer to the low end of that range. And so again, we are very comfortable. You are seeing leverage on that line. So, there is certainly €“ we have also grown 3x since going public. So, I think we went public with about 550,000 maybe less customers. And now we are in North America at 1.445 million. So, we have seen slower growth when we went public initially, and we have seen a reacceleration. Again, this is just one quarter.

We are very comfortable in the World Cup pull forward, which is something we expected. We didn’t expect it to the degree that we actually delivered. So again, we are very comfortable. We have got solid products supported by the J.D. Power ranking number one within the live TV streaming category. We continued to double down on our brand, which is sports-focused and differentiate there. We are doubling down on our product capabilities. I mentioned some of the AI stuff that we are working on, which will allow us to really develop a little bit more interactivity. Hopefully, there will be some testing that will be available to customers towards the end of this year. And then we will continue to differentiate on the content side as well adding in the Bally’s RSNs to superserve sports fan.

So all of where, I don’t think there is anything that would make me feel uncomfortable with respect to hitting the 2025 target.

Operator: Your next question comes from the line of Jim Goss from Barrington Research. Your line is open.

Jim Goss: Alright. Thank you. As Warner Bros Discovery approaches the launch of its combined HBO Max type service that could have Turner Sports programming. Is there any opening that you might have to create a deal with them, to create an add-on service that would deliver about the sports that you have thought of that has seemed too expensive, but also would deliver added content sort of as an add-on as an incremental bonus value to them, value to you?

David Gandler: Yes. So Jim, this is David. Well, first, I will say that we have a deal with Discovery that does not include Turner. If you recall, we dropped Turner when Turner was under the AT&T umbrella. So, we haven’t had conversations yet with the Discovery team. We would love to carry Turner. Obviously, that would have to be accomplished at a level that we feel makes sense given our subscriber-related expense line. But what’s also interesting is that, as I have said previously, we only need about 80% of the gross rating points. So, we are open to doing deals. We are open to optimizing our bundle costs and we will bring one of the best content portfolio and product that we can to our customer base. So hopefully, that conversation will take place at some point. Obviously, our teams are constantly speaking to all of the content providers on a regular basis. So €“ but we will keep you posted, should there be any changes there.