Shares of fuboTV (FUBO -6.96%) initially fell 18% in after-hours trading on Wednesday before recovering. After digesting the company's recent earnings report, however, investors seemed to change their mind, with the share price up 2.6% as of noon ET on Thursday.
Revenue came in above expectations, but the company reported a wider net loss than analysts anticipated. It also guided for a significant deceleration in growth in 2022 over last year. Nonetheless, the streaming platform appears well positioned to take market share from cable.
Revenue grew 144% year over year, but excluding the acquisition of streaming company Molotov, adjusted revenue increased 119%. Overall, these are impressive numbers for a stock that has plummeted 80% over the last year.
The top-line momentum is tremendous, but investors are probably concerned about the costs required to attract new subscribers. Although fuboTV saw subscribers grow 106% year over year to reach 1.13 million (excluding acquisitions), the company reported a net loss of $383 million on $638 million in revenue for the full year.
Still, the triple-digit growth in subscribers and revenue says fuboTV is onto something in the streaming market.
"Importantly, our performance over the course of the year reaffirms our thesis that an aggregated offering with multiple monetization levers remains the most attractive option to drive retention and to create strong unit economics," explained co-founder and CEO David Gandler during the earnings call.
fuboTV is attracting subscribers by offering an unrivaled menu of live sports, integrated sports betting, and new features like multi-view, which allows viewers to watch up to four channels and live game stat feeds.
Management expects revenue and subscribers to grow 70% and 33%, respectively, in 2022. That level of deceleration over 2021 growth might have contributed to the initial sell-off, but expectations are low after the drop in the stock price over the last year. fuboTV is positioned to capitalize on the decline of cable, so the shares could be a good value if the company can continue to improve profitability.