By Senad Karaahmetovic
Shares of FuboTV (NYSE:FUBO) fell 16% in pre-market Monday despite the sports-focused live TV streaming service reporting better-than-expected Q4 results.
FuboTV stock initially rose 6% in pre-open trading after investors digested the company's Q4 earnings report. However, the stock collapsed after the management reported a share sale during the earnings call.
The company then disclosed it raised $68.1 million after selling 36.7M shares in "block trades to multiple investors under the Company's at-the-market [ATM] program."
"The Shares were sold at negotiated discounts to the closing sale price of the Common Stock on the New York Stock Exchange on February 24, 2023," Fubo said in a filing.
For its fourth quarter, FUBO reported a loss per share of $0.39 on revenue of $319.3M. Analysts were looking for a loss per share of $0.71 on sales of $285.6M. Net loss for the quarter stood at $95.9M. Sales increased by 38% year-over-year as subscription revenue rose 39% to $284.9M.
"The fourth quarter also marked our lowest level of quarterly cash usage in Fubo's time as a publicly traded company and we achieved positive gross profit. Over the course of 2022 we undertook bold measures to position our business for today's challenging macroeconomic environment," said David Gandler, co-founder and CEO, Fubo.
For this quarter, FuboTV said revenue should be in the range of $295-300M while full-year revenue is seen between $1.195 billion and $1.225B. Analysts were looking for $304.3M and $1.26B, respectively.