FuboTV Inc. Class A

Good morning. My name is Chris, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the FUBO Q1 2023 earnings call. All ends have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star, then the number one on your telephone keypad. To withdraw your question, please press star one again. In the interest of time, we ask that you please limit yourself to one question and one follow-up. Thank you. Alison Sternberg, SEP of Investor Relations. You may begin.

Thank you for joining us to discuss Fubo's first quarter 2023. With me today is David Gandler, co-founder and CEO of Fubo, and John Giannidis, 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 full year and FUBO strategy, and John will cover the financials and guidance. Then I'm going to turn the call over to the analysts for Q&A. Before we begin, I would like to remind everyone that the following discussion may contain forward-looking statements within the meaning of the federal securities laws including but not limited to statements regarding our financial condition, anticipated financial performance, anticipated cash requirements, and our ATM program, our business strategy and plans, consumer behavior, and expectations regarding profitability. 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 include those discussed in our annual report on Form 10-K for the year ended December 31st, 2022, and other 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. Except as otherwise noted, the resulting guidance we are presenting today are on a continuing operations basis, excluding the historical results of our former gaming segment, which are accounted for as discontinued operations. During the call, we also refer to non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are also available in our Q1 2023 Earnings Shareholder Letter, which is available on our website at ir.fubo.tv. With that, I will turn the call over to David.

Thank you, Allison, and good morning, everyone. I'm pleased to update you on Fubo's strong first quarter results. Fubo's North American streaming business exceeded guidance, posting double-digit year-over-year growth in total revenue and paid subscribers. We closed the quarter with $316.5 million in revenue, up 34% year-over-year, and 1,285,000 subscribers, up 22% year over year. Our rest of world business, which includes our French streaming service Molotov, also posted double-digit growth in total revenue and paid subscribers during the quarter. We delivered a healthy $7.8 million in revenue, up over 40% year over year, and 379,000 paid subscribers, up 24% year over year. Our North American ad sales business delivered $22.5 million in Q1 revenue, remaining flat year over year despite continued pressure on the advertising market. We expect a reacceleration of growth in the second quarter. We announced at our 2022 Investor Day that we are targeting positive cash flow in 2025, and I'm very pleased to report that we continue to meaningfully advance toward that goal. In the first quarter, we reduced our adjusted EBITDA loss by $36 million year-over-year and improved free cash flow by $40 million year-over-year. This is our largest absolute dollar improvement in a profitability metric since we've been a publicly traded company and represents a key milestone. From a cash usage perspective, we anticipate continued significant year-over-year improvement in 2023, similar to our seasonal trajectory in 2022. FUBO continues to focus on efficiently allocating capital through a measured and disciplined approach, in particular on controlling cash usage. We believe that our current cash balance of $364.8 million is sufficient to fund our operating plan until we achieve positive cash flow in 2025. During the quarter, we raised $117.2 million in net proceeds from our at-the-market program, of which $106.1 million settled in the first quarter. And based on our current outlook, we have no further plans to sell under the ATM program. Customers continue to demonstrate their preference for Fubo's content aggregation model delivered through a premium user experience, all through a single app. Our growing market share coupled with the over 100 hours users spend on our platform every month on average support why Fubo ranks number one in customer satisfaction among live TV streaming providers by J.D. Power. Turning to content, we're continuing to double down on our brand proposition by adding more sports. Fubo is now the streaming leader in professional baseball coverage, strengthened by our expanded partnership with Major League Baseball. This is the same popular content that was recently dropped by a competing virtual MVPD and underscores Fubo's solid differentiation for sports fans. We're also continuing to make smart investments with our product with one eye towards delivering a personalized product experience for every customer. Fubo's proprietary tech stack has enabled us to continuously push the boundaries of live TV streaming. We were the first virtual MVPD to launch 4K and multi-view, and we did both years ahead of our peers. Continuing to set the standard for innovation in our industry, we are harnessing our proprietary AI and computer vision technology acquired through the 2021 purchase of Edison.ai. We plan to transform how users engage with streaming video and traditional DVR. We look forward to sharing more details in the coming months. With our sports-first differentiation and premium user experience optimized for live sports, and TV comes pricing power. In early Q1, as a result of recent content additions, we raised prices on our channel plans. These increases had negligible churn impact, supporting our thesis that consumers will pay more for a premium service and underscoring our brand and value proposition. In closing, we had a stronger than expected first quarter, growing double digits, despite ongoing challenges in the marketplace. We continue to invest in custom experiences and engagement levers with the ultimate goal of optimizing monetization. And our focus is always on our path to profitability. We believe our track record, the momentum we continue to see across our key operational metrics, and the strength of our balance sheet clearly demonstrate our continued advancement towards our 2025 positive cash flow goal. I will now turn the call over to John Giannidis, CFO, to discuss our financial results in greater detail.