fuboTV (NYSE:FUBO) offers a sports-centric streaming substitute for the traditional cable TV subscription. Since the pandemic onset, the company has gained momentum when millions of folks started increasing their demand for in-home entertainment options. 

fuboTV had an advantage over its cable and satellite competitors because consumers could sign up for fuboTV with a few clicks versus the complex contracts and the need for professional cable and satellite TV installation. Look for these gains to continue when fuboTV reports third-quarter earnings on Nov. 9.

Two kids watching television on their couch and eating a snack.

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Supercharged growth expected to continue for fuboTV

In its most recent quarter ended June 30, revenue increased by 196% to reach $131 million. That outstanding performance prompted management to raise revenue targets for the rest of the fiscal year.

Notably, fuboTV generates revenue through subscription fees paid by members and advertising shown to viewers. Both have been increasing rapidly as it continues to sign up customers and marketers are willing to spend more to gain the attention of this expanding group of viewers. Indeed, since the second quarter of last year, fuboTV has added a net 396,000 subscribers for a total of 682,000.

That figure is likely to increase, and management estimates it will grow to 815,000 at the midpoint when it reports updated figures on Nov. 9. Folks continue to prefer the streaming alternative to cable TV: It is much more convenient to set up without professional installation. It often costs less, and it can be viewed on multiple devices both at home and away from home. Those advantages should help fuel growth for the industry for several years to come.

Moreover, according to fuboTV management, the company is growing subscribers at a rate more than four times faster than the industry overall. fuboTV's sports-centric strategy is undoubtedly playing a part. One of the main reasons people are attracted to a Live TV bundle is access to sports, which is still scarce among the big streaming content providers. Remember, figures presented by management that make the company look better should be taken with caution until they can be validated by outside sources.

The market is keen on fuboTV stock 

Analysts on Wall Street expect fuboTV to report revenue of $143 million in Q3 and a loss per share of $0.63. The company is still losing money as the cost to provide its services exceeds the revenue it generates. fuboTV is hoping that negative balance to resolve itself as it scales to more subscribers and revenue.

Already, it is showing evidence that the plan is working. In its most recent quarter, operating expenses as a percentage of revenue decreased to 155% from 252% in the same quarter last year. Investors will want to see more progression on this goal when the company's Q3 earnings are announced.

The market seems to like its prospects, and the stock is up 18% so far this year. Investors looking to accumulate shares in this young company are better served to wait for earnings results before buying. That way, you can observe the latest information before making a purchase.

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