FuboTV Inc. Class A

in an answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw that question, again, press star one. Thank you. I would now like to turn the conference over to Alison Sternberg, Senior Vice President of Investor Relations. Alison, you may begin your conference.

Thank you for joining us to discuss Fubo's fourth 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's strategy, and John will cover the financials and guidance. Then we will turn the call over to the analysts for Q&A. 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, business strategy and plans, industry and consumer trends, anti-competitive practices among our competitors, and our response plan, 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 filings with the SEC. Except as otherwise noted, the results and 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 may also refer to certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are also available in our Q4 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. We appreciate you joining us today to discuss Fubo's fourth quarter and full year 2023 results. We are pleased to report that Fubo once again exceeded guidance across key financial and operating metrics in North America with double-digit year-over-year growth during the fourth quarter. We delivered a record 1.62 million paid subscribers, an increase of 12% year-over-year, and $402 million in total revenue up an impressive 29% year over year. Average revenue per user also reached an all-time high of $86.65, an increase of 15% year over year. In the context of a challenging year for the advertising industry, the accomplishments of our ad sales team is indeed noteworthy. Delivering a record $114 million in annual revenue, a 14% increase over the prior year, demonstrates remarkable resilience and effectiveness in our strategy and execution. Our balance sheet is healthy, reinforcing our confidence in achieving our profitability target in 2025. In 2023, we improved free cash flow by $101 million and adjusted EBITDA by $122 million, both over the prior year. This $100 million plus adjusted EBITDA improvement was fueled by robust revenue growth, enhanced operational efficiencies, and stringent cost management. Our ability to efficiently and substantially narrow our losses has been outstanding, setting a benchmark for exceptional performance within our industry. Even with our significant momentum in 2023, had Fubo been afforded the opportunity to compete on fair market terms, In line with other distributors, such as Hulu, Comcast, Charter, and DirecTV Stream, we believe our results could have been even better. In fact, considering the estimated $200 million plus we were forced to pay last year to all of our media partners for content consumers don't want, as well as outsized penetration rates and excess fees paid, we believe Fubo may have been able to break even in 2023. And, most compelling of all, we would have had the opportunity to return these savings to customers in the form of promotions and future discounts. Instead, our customers are hit with annual price hikes because they are forced to buy content they don't want, just to access sports. Last week, we filed an antitrust lawsuit against the Walt Disney Corporation, Fox Corporation, and Warner Brothers Discovery. who are forming a sports streaming joint venture expected to launch this fall. We assert that this JV is an attempt to monopolize the sports streaming industry and eliminate competition. Their proposed venture is, we believe, just the latest example of this sports cartel's attempt to block and steal Fubo's vision of what a sports streaming bundle should look like, resulting in billions of dollars in damages to our business. We consider the defendant's pernicious contractual terms and other anti-competitive practices borderline racketeering. As stated in our complaint, this sports cartel has levied content rates on us that are 30 to 50% plus higher than those of other distributors, forced us to license unwanted non-sports content to access their must-have sports programming, imposed above-market penetration rates for this content, and restricted our ability to offer certain features while permitting competitors and their own vertically integrated services to do so. And this sports cartel further attempts to stifle and destroy competition by forcing Fubo to license content they don't even own, which bloats our bundle and further raises prices for consumers. We have been dealing with widespread and rampant misconduct from this group and the industry at large. It has to stop. Consumers deserve choice. They should only pay for the channels they want. They should be able to access delightful product features to enjoy the streaming experience the way they want to. And they should get all of this at a fair price. I want to be clear that despite these challenges, we remain focused on executing our operating plan. Our ability to improve our business, top and bottom line, in a persistently anti-competitive landscape underscores our team's capacity for sustained execution. We remain focused on offering consumers a dynamic sports-centric entertainment content service and continuing to demonstrate to investors that they can rely on Fubo's consistent performance in meeting our business goals. Delivering an unparalleled streaming offering means solving problems for consumers. As we have said for the past three years, friction and fragmentation in the streaming industry is forcing consumers to pay for multiple services to access must-have content. And with exclusive content fragmented across many services and packaged alongside non-exclusive programming, customers are ultimately paying multiple times for much of the same content. It's a well-established fact that, for the benefit of consumers, and to maximize the monetization of sports leagues intellectual property, sports needs to be broadly disseminated. This is the rationale behind our ambition to become a super aggregator, which we believe addresses the challenge effectively for consumers while also serving as the optimal strategy for our media and advertising partners. Our goal is to engage consumers along the demand curve and deliver aggregated video bundles focused on the consumer experience at different price points. We are not trying to be an app store. Our vision is to offer different types of packages, including free, fast, AVOD, pay-per-view, TVOD, and a virtual MVPD channel bundle and provide consumers with a seamless experience that lets them access just the channels they want, when they want, and at a fair price. First in our super aggregation strategy will be the forthcoming launch of a free content tier to include the nearly 160 fast channels we have launched since 2022. By providing these channels outside of the paywall, we plan to leverage this tier to retain and monetize consumers who sign up for Fubo but either don't convert into paying users or who cancel their subscription. Our goal is to keep customers inside the Fubo ecosystem. There is a lot to enjoy with Fubo, and we intend to deliver multiple content and product options, letting consumers choose the Fubo experience that's right for them. In summary, in 2024, we are focused on solidly executing our business plan, even as we manage headwinds. Our Q4 and full year 2023 performance reaffirms our belief that Fubo's aggregated video bundle delivered through a premium personalized streaming experience offers value for customers, shareholders, and partners. Importantly, we strive to be champions of consumers who are entitled to choose a sports-first bundle that's right for them and at a fair price. We will fight for their right to do so. I will now turn the call over to John Giannidis, CFO, to discuss our financial results in greater detail. John.