fuboTV (FUBO) stock fell by 60% over the past month, despite investors saw significant growth in key numbers in its Q4 and full year 2020 financial results, but it also has several bad figures.
The company reported its subscription revenue was $230.7 million in 2020, an increase of 73% which compared to 2019, and its advertising revenue increased 133% to $29 million. Moreover, it has totaled 547,880 paid subscribers at year end of 2020, seeing an increase of 73% year-over-year. Yes, it looks very good.
However, the company reported a net loss attributable to common stockholders of $570 million in 2020, but to know, this figure was $350 million in 2019, which means that the higher its revenue, the higher its expenses. In 2020, the company had $184 million in subscription revenue, but it had a total of $233 million on subscriber-related expenses and broadcasting expenses.
Such a huge net loss that makes investors concern about the profitability of the company. In other words, the company’s current market value of $2.6 billion is high and is under pressure. The company is looking for incremental business, including entering the sports betting business, but whether any of this works remains to be seen.
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