One of the most interesting things about fuboTV (NYSE:FUBO) stock is the company’s plans for its sportsbook. The project could be revolutionary, as it combines streaming services with online gaming. Naturally, FUBO stock stands to benefit from this move.
As a result, investors wanted more information about its sportsbook when fuboTV released its second-quarter earnings on Aug. 10. They wanted to see if it was still on track for a fourth-quarter launch.
They were also keen to know if fuboTV successfully continued its rapid growth in audience and revenue — even if the company is still not turning a profit.
Considering that FUBO stock jumped more than 10% the day after the earnings statement, I think it’s safe to say Wall Street was pretty happy with what it heard.
I was, too. FUBO stock has a “B” rating in my Portfolio Grader right now with a buy recommendation. I didn’t hear anything this week that would dissuade me from that stance.
FUBO Stock and Q2 Earnings
It was definitely a good quarter for fuboTV. The New York-based streaming television service made $130.9 million in revenue for the quarter. That’s up 196% on a year-over-year (YOY) basis, and handily beat Wall Street’s estimates around $120 million.
Advertising revenue increased to $16.5 million, which was a whopping 281% increase from last year.
FuboTV said it added 91,291 net new users in the quarter, ending with 681,721 subscribers. Users watched 245 million hours of content, which was an increase of 148% from a year ago.
Finally, fuboTV said its average revenue per user rose 30% YOY to $71.43.
“FuboTV delivered a strong second quarter in 2021 across a number of our key financial and operational metrics: subscribers, total revenue, advertising revenue and margin expansion,” said co-founder and CEO David Gandler.
The adjusted net loss for the quarter was 38 cents per share, which was better than analysts’ expectations for a loss of 54 cents. A year ago, fuboTV posted a Q2 loss of $2.82 per share.
The company announced it was increasing its full-year revenue guidance to a range of $560 million to $570 million. It said third-quarter revenue should come in at $140 million to $144 million, which is ahead of analyst estimates of $126.9 million.
It expects to reach 810,000 to 820,000 subscribers by the end of the third quarter, then 910,000 to 920,000 by the end of the year.
FuboTV’s Sportsbook News
FuboTV offers programming of all types. It’s capitalizing on the trend of cable subscribers cutting the cord in favor of streaming entertainment.
But fuboTV stands out from other streaming providers with its strong emphasis on live sports. It has international soccer, tennis, golf and major American sports leagues. It says it streams more than 50,000 live sporting events in a year.
The company will continue to set itself apart by operating its own sportsbook. FuboTV recently announced that it reached an agreement with The Cordish Companies for its upcoming sportsbook in Pennsylvania. When the deal is approved by state regulators, fuboTV will have market access licenses in Pennsylvania, Indiana, Iowa and New Jersey.
Rather that operating a separate sports wagering platform, fuboTV plans to fully integrate its betting platform with its live streaming platform for a “seamless viewing and wagering experience.”
The company previewed the sportsbook in its Q2 letter to shareholders:
“…the Fubo Sportsbook app will immediately and in real time update with relevant bets based on what the user is watching – even as they change the channel to a new game. This invisible connection between streaming video and our mobile betting app is a feature we believe only fuboTV can bring to market.”
That type of integration could be groundbreaking for sports gambling and for FUBO stock. No wonder Wall Street reacted so strongly after the company’s earnings announcement.
The Bottom Line on FUBO Stock
FuboTV appears to be on track to successfully integrate streaming entertainment and online sports gambling. That gives it a unique position among its streaming competitors and in the gambling sector.
The company needs to continue expanding its sportsbook footprint across the U.S. If it does so, then the sky’s the limit for this growth stock.
On the date of publication, neither Louis Navellier nor the biedexmarkets.com Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the biedexmarkets.com.com Publishing Guidelines.
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