UPDATED with closing price. Shares in FuboTV, which recently went public, gained more than 2% to end Wednesday at a record closing price of $16.03 after the company reported better-than-expected subscriber numbers.
The stock jumped more than 20% in early trading Wednesday and at one point surpassed $20 a share before losing steam in the last half of the day.
On Tuesday, Fubo said it had 455,000 subscribers as of September 30, up 58% from the same period in 2019 and ahead of forecasts from the company and Wall Street analysts. Total revenue increased 47% to $61.2 million. Average revenue per user, a key metric in the streaming business, came in at $67.70 per month in the quarter, up 14% from the prior-year quarter.
FuboTV stock, which went public in mid-October, has nearly doubled since its IPO.
While it is not the dominant player in the internet-delivered TV business, Fubo has established its identity since launching in 2015 in large part by providing a wide array of sports programming. Bigger rivals like YouTube TV, Hulu with Live TV and Sling TV all have between 2 million and 3.5 million subscribers but have seen turbulence and high churn as they have spent heavily on acquiring customers.
In Fubo’s earnings release, co-founder and CEO David Gandler said, “A heavy sports calendar, busy news cycle and Hollywood’s fall entertainment season delivered many viewing options for consumers.”
Edgar Bronfman Jr., the former Warner Music CEO and media veteran, joined the company as executive chairman earlier this year. In the earnings release, he said Fubo “sits firmly at the intersection of three megatrends: the secular decline of traditional TV viewership, the shift of TV ad dollars to connected TVs and online sports wagering, a market which we intend to enter. As a result, we believe our growth opportunities are numerous.”