FuboTV Projects Stronger Q4 Revenues, Subscribers, Supply-And-Demand Share Concerns Remain

Amidst some hiccups in the stock market, fuboTV, the virtual pay TV service of live, linear TV networks, continues to expect strong revenue and subscriber gains.

For the fourth quarter, the sports-focused pay TV provider says that in preliminary results, the company now expects a 77% to 84% increase in revenue to between $94 million and $98 million over the same period in 2019. In previous guidance, fuboTV said it would expect between $80 million and $85 million.

In addition, it projects subscribers will grow to 545,000 by year’s end for 2020 -- up more than 72% versus the same period a year earlier. An earlier guidance was for between 500,000 and 510,000 subscribers.

The company did not disclose profitability or cash flow expectations. In the third quarter it posted an operating loss, excluding one-time impairment charges, of $65.5 million, on revenue of $61.2 million.

After the Q4 revenue estimates were announced by the company, its stock rose 17% in early-morning Tuesday trading to $28.39.

The company witnessed a strong spike in its stock after its initial public offering on October 8 -- rising 360%.

Then fuboTV witnessed a big pullback last month starting on December 22 -- partly due to a strong recommendation by LightShed Partners media analyst Richard Greenfield to sell the stock, as well as issues arising at the end of-the year when millions of the company's shares suddenly became available.

"We believe the recent share price weakness was caused by an enormous supply/demand imbalance as 88 million shares became un-locked-up on Dec 30th -- versus less than 20 million shares in the float, and 8 million shares/day of average trading volume, before that," writes Laura Martin, media analyst at Needham & Co.



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