FuboTV (FUBO -13.92%) stock sank in Friday’s trading following the company’s fourth-quarter earnings release. The streaming video specialist’s share price closed out the day down 13.9%.
FuboTV published its Q4 results before the market opened this morning, and the company’s earnings beat in the period wasn’t enough to offset the market’s disappointment with a big sales miss. Making matters worse, the company’s forward guidance came in much worse than anticipated.
FuboTV stock sinks on Q4 sales miss
In the fourth quarter, FuboTV recorded a non-GAAP (generally accepted accounting principles) adjusted loss of $0.02 per share on sales of $431.82 million. The company’s adjusted loss beat the average analyst estimate by $0.09 per share, but revenue for the period came in $13.35 million short of the target. Sales were up roughly 7.8% year over year, and the business closed out the period with record paid subscribers and revenue per user — but there was a big catch.
What’s next for FuboTV?
Despite today’s pullback, FuboTV stock is still up roughly 52% this year thanks to the company’s big investment partnership deal with Disney. On the other hand, it looks like the platform will face some significant performance headwinds in the near term.
In the first quarter, FuboTV expects sales for its North America segment to come in between $400 million and $410 million, suggesting annual growth of 3% at the midpoint of the target range. But with the company guiding for subscribers to decline roughly 4%, it looks like that growth will be powered by pricing increases.
For the company’s rest-of-the-world segment, FuboTV expects sales to be between $7.5 million and $8.5 million in Q1 — representing a year-over-year decline of 5% at the midpoint of the guidance range. Meanwhile, total subscribers in the category are projected to decline roughly 16%.
Keith Noonan has positions in Walt Disney. The Motley Fool has positions in and recommends Walt Disney and fuboTV. The Motley Fool has a disclosure policy.
