fuboTV (FUBO) intends to raise $150 million from the sale of its common stock in an IPO, according to an amended registration statement.
New York, NY-based fuboTV was founded to offer a combination subscription and advertising revenue platform to stream mostly sports events to user devices such as SmartTVs, mobile phones and other computing devices.
In 2019, pre-acquisition, fuboTV generated a monthly ARPU of $54, which represented an increase of 42% over the previous year.
Management is headed by Chief Executive Officer Mr. David Gandler, who has been with the firm since April 2020 and was previously president and CEO of fuboTV and Vice President Ad Sales at DramaFever, a video streaming service.
Below is a brief overview video of a consumer review of fuboTV:
Source: Home Theater Hobbyist
The company’s primary offerings include:
- Live television for sports events
- Over 700 channel access to local TV
- Other streaming providers such as Apple and Google
fuboTV has received at least $850 million from investors.
The firm obtains subscribers through online marketing, providing a trial and seeking conversion to paid status.
fuboTV closed 2019 with 316,000 paying subscribers. Its advertising business grew 201% year-over-year and management says it is a ‘key driver of our monetization strategy.’
Sales & Marketing expenses as a percentage of total revenue have dropped as revenues have increased.
The Sales & Marketing efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Sales & Marketing spend, has increased to 3.9x in the most recent reporting period.
The firm has achieved increasing two-month retention rates over the past several years, as the chart shows below:
According to a 2020 market research report by Absolute Markets Insights, the global market for sports streaming was an estimated $11.3 billion in 2018 and is forecast