What happened

Shares of fuboTV (FUBO 0.72%) jumped on Wednesday after the sports streaming company announced strong first-quarter results. At the close of trading, its stock price was up by 9.9%.

So what

FuboTV's revenue rocketed upward by 135% year over year to $119.7 million, fueled by expectation-crushing customer additions. The company ended the quarter with 590,430 subscribers, representing growth of 105% year over year and up 8% from three months prior.

CEO David Gandler said people are increasingly canceling their cable packages and replacing them with streaming services. "We see this trend continuing to accelerate as more consumers discover they can cut the cord without losing access to the sports teams, live channels, and content they love," he said. 

People are cheering while watching soccer on TV.

Investors cheered fuboTV's first-quarter performance. Image source: Getty Images.

FuboTV is also doing a better job of monetizing its customers. Its average revenue per user (ARPU) per month rose 28% to $69.09, aided by a 57% surge in advertising ARPU per month, to $7.11. "The first quarter was also very strong for our advertising business, building on our subscriber expansion and increased viewer engagement," Gandler said. 

Still, despite the revenue gains, fuboTV generated a net loss of $70.1 million ($0.59 per share) as it ramped up its growth investments. 

Now what 

These results prompted management to boost its full-year revenue forecast to roughly $525 million, up from a prior estimate of $465 million. FuboTV now expects its subscriber count to reach as high as 850,000 by year's end. 

Even that might be a conservative forecast. FuboTV is just scratching the surface of its long-term market opportunity. The company is targeting the 78 million households that still subscribe to cable services. It also hopes to serve the tens of millions of sports fans who like to place wagers on games with its new sports betting platform. 

"As the shift of viewing from traditional pay-TV accelerates, our differentiation in the marketplace -- sports-focused programming, a tech-first and data-driven user experience, and the planned integration of wagering and interactivity -- firmly positions the company strongly for long-term growth," Executive Chairman Edgar Bronfman Jr. said.