FuboTV Inc. Class A

Hello, everyone. Hello, investors. Today we are going to talk about Fubo. Most particularly, we are going not only to talk, we are going to stream in live the earnings call for first quarter 2021 FuboTV. And that is insane what is going on today. I don't know if you saw that, guys. This morning I was doing another earnings call for Palantir and at this point I checked two of my favorite stocks at this moment, Palantir and Fubo. And in the morning, I bought Palantir at around $16 when it was pre-market. So when the market opened, you will not even see the graph. It was, on the chart, it was $18. And then it went up like crazy. And I was kind of thinking, Palantir or Fubo? Palantir or Fubo? And Fubo was $12 at this moment. Now, let's take a look where we are right now. Well, you see, actually, you see the price here. It's... It's insanely $17. And now after market close, it's $22 almost. So from $12 to $22 almost doubled in just a matter of one day. Crazy. Well, Palantir is good as well. But I like those two stocks. You don't see me. I'm here. Okay. Yeah, let me just move it on this side. So do not forget to like and subscribe. I will change this so you can see the price of Fubo in real time. And we are starting in about one minute. So yeah, I've also put the link in the description here and in the live chat. So this link to not private to discord group. There's a small group of investors. We are all like minded persons, just ordinary investors. And well, if you join, you will see everything there. So, yeah, and if you look at the chart here, just real quick, before we start, you see this was a real nice support, just as for Palantir this morning. Really long-term support. Look, one, two, three, and that's just... And then, right now, we're here. Crazy. Okay, now let's hear if... It started. By the way, the sound is okay. Hey, BadGamer. Yeah, 30% at one point. Wow. No, I didn't buy at 12. I was thinking about buying. And I bought Palantir. But it is okay as well. It's around 30-40%. Not 80% though. Okay. So, let me check. started now still silence coming up right how do you guys feel today right in the chat something You know, are you feeling good about Fubo? I saw first results. But I don't want to spoil everything. I want to really listen. Since as well, Fubo is the only company, well, Nokia as well a bit, who is doing a really good job at presenting an earnings call. When you see the video, the live video, well, that's their core thing, right? It's really good that it's there. And, well, it should have started already. I see the indicator live and everything. Okay, I'll just wait a bit. Yeah, my average of FUBA is around 20, 25, something like that. Because I first bought FooBoy was 2023. Then went up to 30. In that range I was buying. Each time I dipped. Yeah. Should start any moment now. 1200 shares I'm not sure how many shares do I have but I know it's around 7% of my total six figures portfolio and I want to buy more honestly this morning I just didn't have money coming on to buy more They're a bit late. The indicator's showing that we are live and everything. Okay, let me just refresh the page. It's refreshing now. While we are waiting, don't forget to smash that like button. And subscribe, of course. Alright, just trying to reload the page. It's going. I wonder if they have difficulties on their side. Just a few moments, guys. Yeah, 2215 now. well I guess they have some you see that their website is still showing that well it's it's live but no music nothing here I just refresh the page so guess we have to wait Okay, here we go.

Thank you for joining us to discuss FuboTV's first quarter 2021. With me today is David Gandler, CEO and co-founder of Fubo, and Simone Iannardi, CFO of Fubo. Full details of our results and additional management commentary are available in our earnings release and letter to shareholders, which can be found on the investor relations section of our website at ir.fubo.tv. 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 analyst to dig into Q&A. Before we begin, I'd like to remind everyone that the following discussion may contain forward-looking statements within the meaning of the federal security laws, including statements regarding our financial condition, anticipated financial performance, market opportunity, business strategy, and plans, and the expected launch of Fubo's sportsbook. These forward-looking statements are subject to certain risks, uncertainties, and assumptions. Important factors that could cause actual results to differ materially from forward-looking statements can be found in the Risk Factors section of our annual report on Form 10-K, filed with the Securities and Exchange Commission on March 25, 2021, and our other periodic filings with the SEC. 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. 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 an annihilation from our GAAP results. Reconciliation of these non-GAAP measures to the most directable comparable GAAP measures are also available in our Q1 2021 Earnings Shareholder Letter, which is available on our website at ir.fubo.tv. With that, I'll turn the call over to David.

Thank you, Brinley, and thank you all for joining us today. I'm very excited to discuss our Q1 2021 results and to give you an update on all the achievements our team has delivered this quarter. First quarter results were very impressive, and we commenced 2021 by raising our full year guidance once again. We achieved our highest ever quarterly revenue, highest ever paid subscriber count, and highest ever viewership hours. As compared to the first quarter of 2020, we grew revenue by 135% to $120 million. advertising revenue by 206% to $12.6 million, paid subscribers by 105% to over 590,000, and streamed content hours by 113% to over 228 million. We accomplished all of this while making significant progress in our path to profitability, improving adjusted EBITDA margin by 33.5 percentage points year over year. This quarter represents an inflection point for our business, as for the first time we overcame historical first quarter seasonal trends and reported sequential revenue and sequential subscriber growth. Consumers are increasingly cutting the cord to go virtual, and they're choosing FuboTV. Net subscriber additions in the first quarter were approximately 43,000 compared to a decline of approximately 28,000 over the prior year period. Since the first quarter of 2020, we have reported approximately 303,000 net ads, which resulted in subscriber growth of 105% year over year, compared to only 24% growth for the entire virtual MVPD market, as reported in Nielsen Media Research over the same period. Equally noteworthy, we achieved strong subscriber growth efficiently, reducing sales and marketing as a percentage of revenue from 28% in Q4 of 2020 to 18% in the first quarter of 2021. Our investments in subscriber intelligence and insights to drive effective decision-making and content optimization play a critical role in our success. While some in the investor community anticipated elevated churn levels in Q1 due to gaps in our basketball coverage, we continue to achieve better churn with 105 basis point improvement year over year. And as a result of our investments in subscriber onboarding, product enhancements, and content personalization, we continue to see year over year lifts in underlying retention. These investments, along with those in technology and platform stability, drove total viewership hours up to 228 million and hours per monthly active user up 8% to an amazing 129 hours per month on average. We also delivered strong advertising revenue growth of 206% year-over-year to $12.6 million, an advertising ARPU of $7.11, driving us towards our target of more than double our advertising revenue this year. Our impressive engagement metrics, particularly our time spent, indicate that consumers prefer a holistic content bundle with a wide assortment of premium content. In our view, the virtual MVPD category will continue to gain popularity. Over the long term, we believe it will become more burdensome and expensive for consumers to actively manage numerous SVOD services, some of which carry slices of sports content. We expect consumers will look for a more unified and personalized streaming experience that provides easy access to premium content, favorite sports teams, and live TV channels. and of course, at a fair price. Consumers come to FuboTV for our superior value, our year-round content offering, live sports, and a customer-centric, innovative product experience. We continue to be measured and disciplined in our content approach, investing in data to make informed decisions on the programming our consumers want to watch. To further our sports-first differentiation, we recently acquired the exclusive rights to South American World Cup qualifiers, also known as CONMEBOL, featuring some of soccer's most competitive teams, Argentina and Brazil. We believe CONMEBOL will not only be a driver of engagement and monetization, but also a means to solidify our brand ahead of the upcoming World Cup in 2022. We've also signed new distribution agreements with Marquee Sports Network Chicago and AT&T Sports Network Pittsburgh that further extend our leading position as the live TV streaming platform with the most regional sports networks in our base package. Recent activity by gaming and distribution companies has validated our vision of creating an immersive sports entertainment experience. we believe will have a very distinct advantage compared to sportsbooks that are partnering with media and distribution companies. Uniquely, FuboTV will look to combine streaming and gaming under one data analytics platform, delivering a holistic and seamless user experience with lower cost of acquisition. To accelerate the launch of our owned and operated sportsbook and entry into wagering, in the first quarter, we completed the acquisition of sports betting and interactive gaming company, Victory, for a total of $37.2 million, comprised of the merger consideration and equity compensation vesting over future periods. With Victory, we acquired the technology to build a consumer-driven sports betting product and accelerate our entry into the online wagering market. Our new Fubo Gaming subsidiary is led by my co-founder, Sung Ho Choi, and Victory's Sam Ratner and Scott Butera, alongside key industry hires like Ali Ganavati, our new head of regulatory technology. Our gaming team has decades of experience navigating the complex gaming regulatory environment and has already made significant progress. This is evidenced by our recent multi-market access deals with Caesars Entertainment, one of the largest gaming entertainment operators in the United States. Our Fubo Sportsbook is expected to launch in the fourth quarter, subject to obtaining requisite regulatory approvals. We are on pace with our internal schedule, making great progress in both market access discussions and product development. Our gaming team is growing at a fast rate, already hiring dozens of full-time employees, including experienced industry executives. Turning to our predictive free-to-play gaming strategy, we are now completing our minimum viable product and are excited to bring it to market. We plan to test the experience integrated into our core video product in the next few weeks. In summary, it has truly been a phenomenal quarter, positioning the company for a stellar 2021. Not only do we have many growth opportunities in the market to be excited about, but we are also in the early innings, with 78 million households still tethered to legacy pay TV. The three megatrends I laid out one year ago, cord cutting, advertising, and sports betting are converging and quickly evolving in our direction. We believe that with our forthcoming sports wagering integration, we have the platform and the expertise to innovate sports entertainment unlike any other company. I look forward to updating you on our progress and will be on Twitter later this evening to answer questions. And now I'll pass it over to Simone to discuss our Q1 financial highlights and raised guidance for 2021. Simone.