Fubotv Inc (FUBO) 2023 Q1 法說會逐字稿

Good morning. My name is Chris and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Fubo Q1 2023 Earnings Call. (Operator Instructions)

早上好。我叫 Chris，今天我將擔任你們的會議接線員。在這個時候，我想歡迎大家參加 Fubo Q1 2023 財報電話會議。 （操作員說明）

Thank you. Alison Sternberg, SVP of Investor Relations. You may begin.

謝謝。投資者關係高級副總裁 Alison Sternberg。你可以開始了。

Thank you for joining us to discuss Fubo's first quarter 2023. With me today is David Gandler, Co-Founder and CEO of Fubo; and John Janedis, CFO of Fubo. Full details of our results and additional management commentary are available in our earnings release and letter to shareholders, which can be found on the investor relations section of our website at ir.fubo.tv.

感謝您加入我們討論 Fubo 的 2023 年第一季度。今天和我在一起的是 Fubo 的聯合創始人兼首席執行官 David Gandler； Fubo 的首席財務官 John Janedis。我們的業績發布和致股東的信中提供了我們業績的全部詳細信息和其他管理層評論，這些信息可以在我們網站 ir.fubo.tv 的投資者關係部分找到。

Before we begin, let me quickly review the format of today's presentation. David is going to start with some brief remarks on the quarter and full year and Fubo strategy, and John will cover the financials and guidance. Then I'm going to turn the call over to the analyst for Q&A. Before we begin, I would like to remind everyone that the following discussion may contain forward-looking statements within the meaning of the federal securities laws, including but not limited to, statements regarding our financial condition, anticipated financial performance, anticipated cash requirements, and our ATM program, our business strategy and plans, consumer behavior and expectations regarding profitability. These forward-looking statements are subject to certain risks, uncertainties and assumptions.

在我們開始之前，讓我快速回顧一下今天演講的形式。 David 將首先對本季度和全年以及 Fubo 戰略進行一些簡短的評論，而 John 將介紹財務和指導。然後我將把電話轉給分析師進行問答。在我們開始之前，我想提醒大家，以下討論可能包含聯邦證券法含義內的前瞻性陳述，包括但不限於關於我們的財務狀況、預期財務業績、預期現金需求和我們的 ATM 計劃、我們的業務戰略和計劃、消費者行為和對盈利能力的期望。這些前瞻性陳述受某些風險、不確定性和假設的影響。

Important factors that could cause actual results to differ materially from forward-looking statements include those discussed in our annual report on Form 10-K for the year ended December 31, 2022, and other filings with the SEC. These statements reflect our current expectations based on our beliefs, assumptions, and information currently available to us. Although, we believe these expectations are reasonable, we undertake no obligation to revise any statements to reflect changes that occur after this call. Except this otherwise noted, the results and guidance we are presenting today are on a continuing operations basis, excluding the historical results of our former gaming segment, which are accounted for as discontinued operations.

可能導致實際結果與前瞻性陳述存在重大差異的重要因素包括我們在截至 2022 年 12 月 31 日的年度 10-K 表格年度報告以及向美國證券交易委員會提交的其他文件中討論的那些因素。這些陳述反映了我們基於我們目前可獲得的信念、假設和信息的當前期望。儘管我們認為這些預期是合理的，但我們沒有義務修改任何聲明以反映此次電話會議後發生的變化。除非另有說明，否則我們今天提供的結果和指導均基於持續經營，不包括我們以前的博彩部門的歷史業績，這些業務被視為已終止經營。

During the call, we also refer to non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are also available in our Q1 2023 earnings shareholder letter, which is available on our website at ir.fubo.tv.

在電話會議期間，我們還提到了非 GAAP 財務措施。這些非 GAAP 措施與最直接可比的 GAAP 措施的對賬也可在我們的 2023 年第一季度收益股東信中找到，該信可在我們的網站 ir.fubo.tv 上找到。

With that, I will turn the call over to David.

有了這個，我會把電話轉給大衛。

Thank you, Alison, and good morning everyone. I'm pleased to update you on Fubo's strong first quarter results. Fubo's North American streaming business exceeded guidance, posting double-digit year-over-year growth in total revenue and paid subscribers. We closed the quarter with $316.5 million in revenue, up 34% year-over-year and 1,285,000 subscribers up 22% year-over-year.

謝謝你，艾莉森，大家早上好。我很高興向您介紹 Fubo 強勁的第一季度業績。 Fubo 的北美流媒體業務超出預期，在總收入和付費用戶方面實現了兩位數的同比增長。本季度末，我們的收入為 3.165 億美元，同比增長 34%，訂戶數量為 1,285,000 人，同比增長 22%。

Our Rest of World business, which includes our French streaming service Molotov also posted double-digit growth in total revenue and paid subscribers during the quarter. We delivered a healthy $7.8 million in revenue up over 40% year-over-year, and 379,000 paid subscribers up 24% year-over-year.

我們在世界其他地區的業務，包括我們的法國流媒體服務 Molotov，在本季度的總收入和付費用戶方面也實現了兩位數的增長。我們實現了 780 萬美元的穩健收入，同比增長超過 40%，付費用戶達到 379,000 人，同比增長 24%。

Our North American ad sales business delivered $22.5 million in Q1 revenue remaining flat year-over-year, despite continued pressure on the advertising market. We expect a reacceleration of growth in the second quarter. We announced at our 2022 Investor Day that we are targeting positive cash flow in 2025, and I'm very pleased to report that we continue to meaningfully advance toward that goal.

儘管廣告市場持續面臨壓力，但我們的北美廣告銷售業務在第一季度實現了 2250 萬美元的收入，同比持平。我們預計第二季度增長將重新加速。我們在 2022 年投資者日宣布，我們的目標是在 2025 年實現正現金流，我很高興地報告，我們將繼續朝著這一目標有意義地推進。

In the first quarter, we reduced our adjusted EBITDA loss by $36 million year-over-year and improved free cash flow by $40 million year-over-year. This is our largest absolute dollar improvement in a profitability metric, since we've been a publicly traded company and represents a key milestone. From a cash usage perspective, we anticipate continued significant year-over-year improvement in 2023, similar to our seasonal trajectory in 2022.

第一季度，我們將調整後的 EBITDA 虧損同比減少了 3600 萬美元，並將自由現金流同比改善了 4000 萬美元。這是我們在盈利能力指標方面最大的絕對美元改善，因為我們一直是一家上市公司，代表著一個重要的里程碑。從現金使用的角度來看，我們預計 2023 年將繼續顯著同比改善，類似於我們 2022 年的季節性軌跡。

Fubo continues to focus on efficiently allocating capital through a measured and disciplined approach, in particular, on controlling cash usage. We believe that our current cash balance of $364.8 million is sufficient to fund our operating plan until we achieve positive cash flow in 2025. During the quarter, we raised $117.2 million in net proceeds from our at-the-market program, of which $106.1 million settled in the first quarter. And based on our current outlook, we have no further plans to sell under the ATM program.

富博繼續專注於通過有節制和有紀律的方法有效地分配資本，特別是控制現金使用。我們認為，我們目前 3.648 億美元的現金餘額足以為我們的運營計劃提供資金，直到我們在 2025 年實現正現金流。本季度，我們從上市計劃中籌集了 1.172 億美元的淨收益，其中 1.061 億美元一季度入駐。根據我們目前的展望，我們沒有進一步的計劃在 ATM 計劃下出售。

Customers continue to demonstrate their preference for Fubo's content aggregation model delivered through a premium user experience, all through a single app. Our growing market share coupled with the over 100 hours users spend on our platform every month on average support, why Fubo ranks #1 in customer satisfaction among live TV Streaming Providers by J.D. Power.

客戶繼續表現出他們對通過優質用戶體驗提供的 Fubo 內容聚合模型的偏好，所有這些都通過一個應用程序完成。我們不斷增長的市場份額加上用戶每月在我們平台上花費的平均支持時間超過 100 小時，這就是為什麼 Fubo 在 J.D. Power 的直播電視流媒體提供商客戶滿意度中排名第一。

Turning to content, we're continuing to double down on our brand proposition by adding more sports. Fubo is now the streaming leader in professional baseball coverage strengthened by our expanded partnership with Major League Baseball. This is the same popular content that was recently dropped by a competing virtual MVPD and underscores Fubo's solid differentiation for sports fans. We're also continuing to make smart investments with our product with one eye towards delivering a personalized product experience for every customer. Fubo's proprietary tech stack has enabled us to continuously push the boundaries of live TV streaming. We were the first virtual MVPD to launch 4K and MultiView, and we did both years ahead of our peers.

談到內容，我們將繼續通過增加更多運動來加倍我們的品牌主張。 Fubo 現在是職業棒球報導領域的流媒體領導者，這得益於我們與美國職業棒球大聯盟擴大的合作關係。這與競爭虛擬 MVPD 最近放棄的流行內容相同，並強調了 Fubo 對體育迷的堅實差異化。我們還將繼續對我們的產品進行明智的投資，著眼於為每位客戶提供個性化的產品體驗。 Fubo 的專有技術堆棧使我們能夠不斷突破直播電視流媒體的界限。我們是第一個推出 4K 和 MultiView 的虛擬 MVPD，而且我們在這兩年都領先於同行。

Continuing to set the standard for innovation in our industry, we are harnessing our proprietary AI and computer vision technology acquired through the 2021 purchase of Edisn.ai. We plan to transform how users engage with streaming video and traditional DVR. We look forward to sharing more details in the coming months. With our sports first differentiation and premium user experience optimized for live sports and TV comes pricing power.

為了繼續為我們的行業設定創新標準，我們正在利用通過 2021 年收購 Edisn.ai 獲得的專有人工智能和計算機視覺技術。我們計劃改變用戶使用流媒體視頻和傳統 DVR 的方式。我們期待在未來幾個月內分享更多細節。憑藉我們的體育第一差異化和針對直播體育和電視優化的優質用戶體驗，定價權也隨之而來。

In early Q1, as a result of recent content additions, we raised prices on our channel plans. These increases had negligible churn impact supporting our thesis that consumers will pay more for a premium service and underscoring our brand and value proposition. In closing, we had a stronger than expected first quarter growing double digits. Despite ongoing challenges in the marketplace, we continue to invest in custom experiences and engagement levers with the ultimate goal of optimizing monetization, and our focus is always on our path to profitability.

在第一季度初，由於最近增加了內容，我們提高了頻道計劃的價格。這些增長對客戶流失的影響微不足道，這支持了我們的論點，即消費者將為優質服務支付更多費用，並強調了我們的品牌和價值主張。最後，我們第一季度的兩位數增長強於預期。儘管市場面臨持續挑戰，但我們繼續投資於定制體驗和參與槓桿，最終目標是優化貨幣化，我們的重點始終放在盈利之路上。

We believe our track record the momentum we continue to see across our key operational metrics and the strength of our balance sheet clearly demonstrate our continued advancement towards our 2025 positive cash flow goal.

我們相信，我們的往績記錄、我們在關鍵運營指標中繼續看到的勢頭以及我們資產負債表的實力清楚地表明我們在朝著 2025 年正現金流目標邁進。

I will now turn the call over to John Janedis, CFO to discuss our financial results in greater detail. John?

我現在將電話轉給首席財務官 John Janedis，以更詳細地討論我們的財務業績。約翰？

Thank you, David, and good morning everyone. Our first quarter results reflect market progress against many of our goals and key operating metrics. More importantly, we expect this trend to continue.

謝謝你，大衛，大家早上好。我們第一季度的業績反映了我們許多目標和關鍵運營指標的市場進展。更重要的是，我們預計這一趨勢將繼續下去。

Total revenue for the quarter increased 34% to a record $324.4 million, driven by 34% revenue growth across North America and 41% revenue growth from Rest of World. Our top line growth continues to be driven by healthy increases in subscribers, including a 22% increase in North America's subscribers to 1.285 million, along with a 24% increase in Rest of World subscribers to 379,000.

本季度總收入增長 34%，達到創紀錄的 3.244 億美元，這主要得益於北美地區 34% 的收入增長和世界其他地區 41% 的收入增長。我們的收入增長繼續受到訂戶健康增長的推動，包括北美訂戶增長 22% 至 128.5 萬，以及世界其他地區訂戶增長 24% 至 379,000。

We are pleased with our progress on the modernization front with North America ARPU expansion of 8% to $76.79. And despite the headwinds across overall advertising budgets, we were able to deliver $22.5 million in advertising revenue across North America remaining relatively flat year-over-year.

我們對我們在現代化方面取得的進展感到高興，北美 ARPU 增長 8% 至 76.79 美元。儘管總體廣告預算存在不利因素，但我們在北美實現了 2250 萬美元的廣告收入，同比保持相對平穩。

We're also pleased with the progress we have made on the operating and cost out of the business, including a positive gross profit and a 1,075 basis point improvement in gross margin versus Q1 2022. This resulted in a net loss of $83.4 million, a $45 million reduction year-over-year, and a net loss margin of negative 26% favorably compared to a negative 53% net loss margin in the prior year period. This led to a first quarter 2023 loss per share of $0.37 compared to a loss of $0.81 in the first quarter of 2022.

我們也對我們在業務運營和成本方面取得的進展感到滿意，包括毛利潤為正，毛利率與 2022 年第一季度相比提高了 1,075 個基點。這導致淨虧損 8,340 萬美元，同比減少 4500 萬美元，淨虧損率為負 26%，而去年同期為負 53%。這導致 2023 年第一季度每股虧損 0.37 美元，而 2022 年第一季度為每股虧損 0.81 美元。

First quarter adjusted EBITDA loss improved to a loss of $58.9 million compared to a loss of $95.3 million in the first quarter of 2022 and adjusted EBITDA margin was minus 18.2%, an improvement from minus 39.3% in the prior year period. This resulted in an adjusted EPS loss of $0.27, an improvement compared to an adjusted EPS loss of $0.62 in Q1 2022.

第一季度調整後的 EBITDA 虧損從 2022 年第一季度的虧損 9530 萬美元減少至虧損 5890 萬美元，調整後的 EBITDA 利潤率為負 18.2%，高於去年同期的負 39.3%。這導致調整後每股收益虧損 0.27 美元，與 2022 年第一季度調整後每股收益虧損 0.62 美元相比有所改善。

Turning to our path to profitability, we are pleased with our ongoing effort to identify efficiencies and maximize leverage across each operating expense category. For example, we demonstrated greater leverage over our subscriber-related expenses, which decreased from 101% to 93% of revenue in Q1 2023 versus the prior year period. We expect this year-over-year trend to continue as we work towards meaningfully growing subscribers, optimizing our pricing and further improving our mix of premium plans.

談到我們的盈利之路，我們很高興我們不斷努力確定效率並最大限度地提高每個運營費用類別的槓桿率。例如，我們展示了對訂戶相關費用的更大槓桿作用，與去年同期相比，2023 年第一季度該費用佔收入的比例從 101% 下降到 93%。隨著我們努力實現有意義的用戶增長、優化我們的定價並進一步改善我們的保費計劃組合，我們預計這種同比趨勢將繼續下去。

Turning to cash flow, we were pleased to improve free cash flow by $40 million year-over-year. Accordingly, our expectation continues to be that both adjusted EBITDA and free cash flow will improve on a year-over-year basis, as we believe 2022 represented peak losses for our business. As it relates to our balance sheet, we ended the quarter with $364.8 million of cash, cash equivalents and restricted cash.

談到現金流，我們很高興自由現金流同比增加 4000 萬美元。因此，我們仍然預計調整後的 EBITDA 和自由現金流量都將同比改善，因為我們認為 2022 年是我們業務的峰值損失。由於與我們的資產負債表相關，我們在本季度結束時擁有 3.648 億美元的現金、現金等價物和受限制的現金。

During the quarter, we raised $117.2 million in net proceeds from or at-the-market or ATM program, $106.1 million of which settled in Q1 and the remainder settled in Q2. From a capital structure standpoint, we remain highly disciplined in our investments and deployment of cash, while also affording Fubo, the financial flexibility to fund measured and disciplined growth initiatives. Importantly, given our cash position and planned expense and investments, we are confident that our cash balance is sufficient to achieve positive cash flow in 2025, based on our current operating plan.

本季度，我們從市場或 ATM 計劃中籌集了 1.172 億美元的淨收益，其中 1.061 億美元在第一季度結算，其餘在第二季度結算。從資本結構的角度來看，我們在投資和現金部署方面保持高度紀律，同時也為 Fubo 提供財務靈活性，以資助有節制和有紀律的增長計劃。重要的是，鑑於我們的現金狀況以及計劃的費用和投資，我們有信心根據我們目前的運營計劃，我們的現金餘額足以在 2025 年實現正現金流。

Moving to guidance, we are guiding North America's second quarter 2023 subscribers of 1.12 million to 1.14 million, representing at 19% year-over-year growth at the midpoint, and we expect revenue of $292.5 million to $297.5 million, representing 36% year-over-year growth at the midpoint. For the full year 2023, we are raising our previous guidance for North America and now expect full year 2023 subscribers of 1.55 million to 1.57 million, representing 8% year-over-year growth at the midpoint and full year 2023 revenue of $1,235 million to $1,265 million, representing 27% year-over-year growth at the midpoint.

轉向指導，我們指導北美 2023 年第二季度的訂戶為 112 萬至 114 萬，中點同比增長 19%，我們預計收入為 2.925 億美元至 2.975 億美元，同比增長 36%-中點的同比增長。對於 2023 年全年，我們提高了之前對北美的指導，現在預計 2023 年全年訂戶將達到 155 萬至 157 萬，中點同比增長 8%，2023 年全年收入將達到 12.35 億美元至 157 萬美元12.65 億美元，中點同比增長 27%。

For Rest of World, our Q2 2023 guidance projects 377,500 to 382,500 subscribers representing 10% year-over-year growth at the midpoint and revenue of $6.9 million to $7.9 million, representing 27% year-over-year growth at the midpoint. Our full year 2023 Rest of World guidance projects 395,000 to 415,000 subscribers representing a 4% year-over-year decline in the midpoint and revenue of $28.6 million to $32.6 million, representing 26% year-over-year growth at the midpoint.

對於世界其他地區，我們的 2023 年第二季度指南預計訂戶將達到 377,500 至 382,500 人，中點同比增長 10%，收入為 690 萬美元至 790 萬美元，中點同比增長 27%。我們的 2023 年全年世界其他地區指南預計訂戶將達到 395,000 至 415,000 人，中點同比下降 4%，收入為 2860 萬美元至 3260 萬美元，中點同比增長 26%。

Note that the fourth quarter 2022 subscriber number was impacted by the World Cup. Our Q2 2023 guidance reflects our ongoing emphasis on expanding ARPU and improving unit economics with revenue growing and more than 3x forecast the subscriber growth. In summary, our performance in the quarter reflects our continued focus on the unit economics of our streaming business, margin expansion, gross profit and cash usage, and we are very pleased with our recent results and remain confident in our ability to our goal of positive cash flow in 2025.

請注意，2022 年第四季度的訂戶數量受到了世界杯的影響。我們的 2023 年第二季度指引反映了我們持續強調擴大 ARPU 和提高單位經濟效益，收入增長和超過 3 倍的預測用戶增長。總而言之，我們在本季度的表現反映了我們繼續關注流媒體業務的單位經濟效益、利潤率擴張、毛利和現金使用情況，我們對最近的業績感到非常滿意，並對我們實現積極目標的能力充滿信心2025年的現金流。

With that, I would now like to turn the call over to the operator for the question-and-answer session. Operator?

有了這個，我現在想把電話轉給接線員進行問答環節。操作員？

(Operator Instructions) Our first question is from Laura Martin with Needham.

（操作員說明）我們的第一個問題來自 Laura Martin 和 Needham。

Great numbers, you guys. David, let's start with the price increase. You guys did sort of an aggressive price increase in January, can you talk about up-to-date what's going on with the churn? Because your sub numbers are excellent, I would have expected churn to be higher.

偉大的數字，你們。大衛，讓我們從漲價開始。你們在 1 月份確實大幅提價，您能談談最新的客戶流失情況嗎？因為您的子號碼非常好，所以我預計客戶流失率會更高。

Yes. Well, first of all, thank you very much, Laura. I look forward to seeing you in a couple of weeks. I think that one of the things that we're really focused on during the last earnings call was the fact that we did -- we had 2 price ups. We had the $5 price up. And then in addition, there was the -- I would say, I think it was within 30 days or 35 days, we had an additional increase of $12. And so going into the earnings call without really understanding sort of the fate of the RSNs, we had a sense of what would happen. We were a little bit more conservative. But I think the 2 cohorts that we were most concerned about that we mentioned on the last call was the World Cup cohort and the NFL cohort, which typically we would have expected them to churn off significantly at a greater pace. But I think the fact that we did have the RSNs allowed us to give an option to those people to stay on the platform. And so from that respect, the crossover into the RSNs was actually much stronger than we anticipated, and that resulted in stronger subscriber additions.

是的。嗯，首先，非常感謝你，勞拉。我期待著在幾週後見到你。我認為我們在上次財報電話會議上真正關注的事情之一是我們確實做到了——我們進行了 2 次提價。我們的價格上漲了 5 美元。此外，還有——我想說，我認為是在 30 天或 35 天內，我們又增加了 12 美元。因此，在沒有真正了解 RSN 的命運的情況下進入收益電話會議，我們對會發生什麼有所了解。我們有點保守。但我認為我們在上次電話會議中提到的最關心的 2 個隊列是世界杯隊列和 NFL 隊列，通常我們預計他們會以更快的速度大幅流失。但我認為，我們確實擁有 RSN，這一事實讓我們可以為那些留在平台上的人提供選擇。因此，從這方面來看，與 RSN 的交叉實際上比我們預期的要強得多，這導致了更強勁的訂閱者增加。

Laura, maybe I'd add a couple of things as well. This is John. For Q1 year-over-year, we saw churn up very modestly. So to David's point, it was up less than 100 basis points, but we thought it actually could have track a little bit higher. And for 2Q, we obviously -- we're always looking at a tail potentially in terms of a churn impact, call it, a couple of months or a quarter or 2 out. And what I can say, as of now at least is that, quarter-to-date churn is actually down year-over-year.

勞拉，也許我還要補充幾件事。這是約翰。對於與去年同期相比的第一季度，我們看到流失率非常適度。因此，就大衛的觀點而言，它上漲了不到 100 個基點，但我們認為它實際上可能會上漲一點。對於第二季度，我們顯然 - 我們總是在考慮流失影響方面潛在的尾巴，稱之為幾個月或一個季度或兩個。我可以說的是，至少到目前為止，季度至今的流失率實際上同比下降了。

Okay. Very helpful. And I won't ask my advertising question, but I will. Let's follow-up on your RSN comment, can you tell us now, I know you guys paid a lot of money for those. And can you tell us what's going on with all these headlines we're reading about teams pulling out of the RSN? Can you tell us, what's the status of your rights and your payment obligations if the RSN bundle falls apart from a rights point of view?

好的。很有幫助。我不會問我的廣告問題，但我會的。讓我們跟進您的 RSN 評論，您現在能告訴我們嗎，我知道你們為此付出了很多錢。你能告訴我們我們正在閱讀的所有這些關於團隊退出 RSN 的頭條新聞是怎麼回事嗎？您能否告訴我們，如果 RSN 捆綁包從權利的角度來看分崩離析，您的權利和付款義務的狀態如何？

Good question. So first of all, we've had a set of RSNs now, I think, for the last few years. We've had the greatest number of independent RSNs as well. And so as we've seen in other regions, such as Boston and NESN, many of these services are either have a direct-to-consumer service or planning to launch a direct-to-consumer service. It hasn't really impacted us to the same degree. And I think folks just need to remember that these markets are very small. And it's very difficult to generate a significant amount of money in small markets. And so I think that our relationship continues to strengthen with not only Diamond Sports with individual teams, as you saw, what we did with Boston Red Sox, I'm sure there are other deals that are on the way. But we don't see that there's really any impact.

好問題。首先，我想，在過去幾年裡，我們現在已經有了一組 RSN。我們也擁有最多數量的獨立 RSN。因此，正如我們在波士頓和 NESN 等其他地區看到的那樣，其中許多服務要么擁有直接面向消費者的服務，要么計劃推出直接面向消費者的服務。它並沒有真正對我們產生同樣程度的影響。而且我認為人們只需要記住這些市場非常小。而且很難在小市場上產生大量資金。因此，我認為我們的關係不僅與 Diamond Sports 與各個球隊的關係繼續加強，正如您所看到的，我們與波士頓紅襪隊所做的，我相信還有其他交易正在進行中。但我們沒有看到真的有任何影響。

As it relates to the deal that we have in place right now, obviously, I can't talk about the deal itself, but there are provisions in there that allow us to reduce payments should certain events occur. So from that perspective, we've been very happy with our relationship and Major League Baseball has also done a great job. I think the one other thing that's really worked in our favor is the change in rules, particularly around pitching. The pitching clock and sort of all of these things combined have led to some strong results. But the last thing I'll say, in terms of the price ups, I think the goal that we had initially was to reduce the cost of entry and create attractive user economics. And given what we've been able to deliver from a free cash flow improvement that really we've achieved the goal that we've set out for.

由於它與我們現在達成的交易有關，顯然，我不能談論交易本身，但其中有條款允許我們在某些事件發生時減少付款。所以從這個角度來看，我們對我們的關係非常滿意，美國職業棒球大聯盟也做得很好。我認為另一件真正對我們有利的事情是規則的改變，尤其是在投球方面。投球時鐘和所有這些因素的結合導致了一些強勁的結果。但最後我要說的是，就價格上漲而言，我認為我們最初的目標是降低進入成本並創造有吸引力的用戶經濟。鑑於我們能夠從自由現金流的改善中實現，我們確實實現了我們設定的目標。

The next question is from Shweta Khajuria with Evercore ISI.

下一個問題來自 Evercore ISI 的 Shweta Khajuria。

Could you please talk about just the overall demand trends? And I'm referring specifically to Connected TV advertising demand trends. I know it was flat year-over-year, despite what we are hearing in the environment. But we -- it's also the new front season. So what have you heard? What is top of mind for people and anything in particular that jumps out, whether it is specific categories or verticals that you can call out?

能否請您談談總體需求趨勢？我特別指的是聯網電視廣告需求趨勢。我知道它同比持平，儘管我們在環境中聽到了什麼。但是我們——這也是新的前季。那麼你聽到了什麼？人們最關心的是什麼，特別是跳出來的東西，無論是特定類別還是您可以調用的垂直領域？

Yes. Sure, Shweta. I'll start with that. So when we look at our Q1 results, to your point, we came at about flat on ad revenue. From a monthly perspective, let me just talk you through that, and then I'll also go through 2Q in some of the categories. March was better than February, which is better than January. And I'd say, if I sort of give you some of the numbers around that, January was down slightly, February, call it, flattish, and then March was up a bit, maybe call it, mid-singles. And then we're seeing further acceleration now into April and 2Q. And so far, April, I think finished up in the double digits. So we're encouraged by what we're seeing in terms of some of the trends.

是的。當然，Shweta。我會從那個開始。因此，當我們查看第一季度的結果時，就您的觀點而言，我們的廣告收入基本持平。從每月的角度來看，讓我來談談這個，然後我也會在某些類別中討論第二季度。三月好於二月，二月又好於一月。我想說，如果我給你一些數據，1 月份略有下降，2 月份，可以稱之為持平，然後 3 月份略有上升，也許可以稱之為中單。然後我們看到現在進入 4 月和第二季度進一步加速。到目前為止，四月，我認為已經達到了兩位數。因此，我們對所看到的一些趨勢感到鼓舞。

From a category perspective, I would say, in the first quarter, we saw strength in financials, CPG, travel and competitive. And then on the software side, we saw some weakness in pharma, auto and retail. And then for the second quarter, call it, a month in visibility a bit limited. But as of now, we're seeing strength in retail, pharma, travel, CPG and QSR, and then, as you may expect a little bit of weakness in financials and insurance, and then also in the telecom space. One thing on the new fronts, you would ask also. I would say look, it's obviously still early. I'd say encouraging from when I talk to our ad sales team. And so we've added a lot of initial dialogue and incoming from agencies, but nothing to report yet. I'm sure we'll have more on the second quarter call.

從類別的角度來看，我想說，在第一季度，我們看到了金融、CPG、旅遊和競爭方面的實力。然後在軟件方面，我們看到了製藥、汽車和零售業的一些弱點。然後對於第二季度，稱之為一個月的能見度有點有限。但截至目前，我們看到零售、製藥、旅遊、CPG 和 QSR 領域表現強勁，然後，正如您可能預料的那樣，金融和保險領域會出現一些疲軟，然後是電信領域。關於新戰線的一件事，你也會問。我會說看，顯然還早。當我與我們的廣告銷售團隊交談時，我會說鼓勵。因此，我們添加了很多初步對話和來自機構的信息，但還沒有任何報告。我相信我們會在第二季度的電話會議上有更多。

The next question is from Darren Aftahi with ROTH MKM.

下一個問題來自 Darren Aftahi 和 ROTH MKM。

Following upon advertising, can you kind of speak to your direct ad sales efforts kind of progress there? What is direct in like Q1 as a percentage of total mix?

在廣告之後，你能談談你的直接廣告銷售工作在那裡取得的進展嗎？ Q1 中直接佔總組合的百分比是多少？

Yes. Well, this is an area that we said we're going to be focused on. And so we started building out the team. It's still relatively small and direct. This is why I'm excited about the advertising business. It's still a dramatically small component of our overall advertising sales. I'm not going to give a number, but it's extremely small, which gives me a lot of comfort in our ability to continue to drive revenue. There's a few factors in that that are also going to be quite helpful. We've seen ad avails increased by about 30% year-over-year despite viewership trends that are relatively flat as said in my opening comments that we're over 100 hours of viewing.

是的。好吧，這是我們說過要重點關注的領域。所以我們開始組建團隊。它仍然相對較小且直接。這就是我對廣告業務感到興奮的原因。它仍然是我們整體廣告銷售額的一小部分。我不會給出一個數字，但它非常小，這讓我對我們繼續推動收入的能力感到非常欣慰。其中有一些因素也會非常有幫助。儘管收視率趨勢相對平穩，但正如我在開場評論中所說的那樣，我們的觀看時間超過 100 小時，我們已經看到廣告效用同比增長了約 30%。

So that -- and that comes from, again, adding more RSNs. So we're diluting the number of hours, people watching on broadcast towards hours watching the RSNs and that is creating more inventory given the fact we don't have inventory and the broadcast nets. The other component, which is really working in our favor is, the fast channels. As you know, we have a 50% split in most cases with our fast channel partners, which is more than twice the amount of inventory we get from the cable nets. And that viewership despite being sub-5% is providing upwards of 7% or 8% in terms of avail. So there's a lot of opportunity there.

所以——這再次來自於添加更多的 RSN。因此，我們正在稀釋小時數，人們在廣播中觀看的時間減少到觀看 RSN 的時間，鑑於我們沒有庫存和廣播網絡，這正在創造更多的庫存。另一個真正對我們有利的組成部分是快速通道。如您所知，在大多數情況下，我們與我們的快速渠道合作夥伴有 50% 的分成，這是我們從有線網絡獲得的庫存量的兩倍多。儘管收視率低於 5%，但在可用性方面卻提供了 7% 或 8% 以上的收視率。所以那裡有很多機會。

We just presented yesterday, I think, it was no -- sorry, May 3, at the new fronts and there's a lot of buzz, a lot of interest in our capabilities. And we're very focused on continuing to develop those and ensure that our sales team will be out in market with strong products and sponsorship opportunities. But still very early, in that process, which is why given where our numbers are today, I'm very comfortable that we'll continue to see growth, not only from now but through 2025, ensuring we achieve our profitability targets.

我想，我們昨天剛剛展示了——抱歉，5 月 3 日，在新的戰線上，有很多嗡嗡聲，對我們的能力很感興趣。我們非常專注於繼續開發這些產品，並確保我們的銷售團隊將以強大的產品和讚助機會進入市場。但在這個過程中還很早，這就是為什麼考慮到我們今天的數字，我很高興我們將繼續看到增長，不僅從現在開始，而且到 2025 年，確保我們實現盈利目標。

Okay. And Darren, I would just add one thing on that. In terms of direct as a percentage, just pure direct, that number as a year-over-year growth percentage was triple digits. And I'd say, we would assume that that number trends to the double digits over the next say, couple of quarters or beyond into 2024.

好的。達倫，我只想補充一件事。就直接百分比而言，就純直接而言，這個數字作為同比增長百分比是三位數。我想說的是，我們假設這個數字在接下來的幾個季度或更長時間到 2024 年會達到兩位數。

Yes. And just so everyone understands the importance of that is that CPMs are typically between 20% and 50% above programmatic CPM. So it's a very important component for us going forward in an area of focus.

是的。每個人都明白這一點的重要性，即每千次展示費用通常比程序化每千次展示費用高出 20% 到 50%。因此，它是我們在重點領域前進的一個非常重要的組成部分。

If I could follow-up, one more thing on content costs, I know you guys have been pretty focused on reducing this and looking at line items by line items and ROIs. I guess, can I -- where are we in that game of evaluation, what inning and I guess how much more wood is there to chop on your SRE KPI?

如果我可以跟進，關於內容成本的另一件事，我知道你們一直非常專注於減少這一點並按訂單項和投資回報率查看訂單項。我想，我可以——我們在那個評估遊戲中處於什麼位置，我猜想在你的 SRE KPI 上還有多少木頭可以砍？

Well, Darren, that's a great question. I think look, again, I keep wanting -- I'm going to start talking more about history of Fubo, because it is a very telling story of what we could potentially do. You've seen us drop content in the past and continue to grow our market share. We are going to continue to make some very bold moves. And going into 2025, we feel that there's a lot of room there, on that SRE line. As you know, we've improved that line from 101% of revenue to now 93%. We're going to continue to focus on that. We think there's some good wood to chop there. And we're starting to see deals where we're getting volume discounts as well.

好吧，達倫，這是一個很好的問題。我想，再一次，我一直想要——我將開始更多地談論 Fubo 的歷史，因為這是一個非常有說服力的故事，說明我們可以做什麼。您已經看到我們過去放棄內容並繼續擴大我們的市場份額。我們將繼續採取一些非常大膽的舉措。進入 2025 年，我們覺得 SRE 線上有很大的空間。如您所知，我們已將這條線從收入的 101% 提高到現在的 93%。我們將繼續關注這一點。我們認為那裡有一些好木材可以砍伐。我們也開始看到我們也獲得批量折扣的交易。

Given the trend in cable, coupled with the complexity of achieving profitability in streaming. We think this is the right space that we're in. Similar to theatrical, where a lot of the major media companies have decided that, they didn't want to be in theatrical. They wanted to go right to streaming and now back to theatrical. There's a tremendous amount of value created for media partners with a product like ours. So we're very confident that we'll be able to have some sort of positive impact between now and our profitability target. We're very focused.

鑑於有線電視的趨勢，以及流媒體實現盈利的複雜性。我們認為這是我們所處的正確空間。類似於劇院，許多主要媒體公司已經決定，他們不想進入劇院。他們想直接去流媒體，現在又回到劇院。像我們這樣的產品可以為媒體合作夥伴創造巨大的價值。因此，我們非常有信心，從現在到我們的盈利目標，我們將能夠產生某種積極影響。我們非常專注。

(Operator Instructions) The next question is from Nicholas Zangler with Stephens.

（操作員說明）下一個問題來自 Nicholas Zangler 和 Stephens。

This is Dean on for Nick. Congrats on the quarter. We were just noticing in the new fronts and emphasis on interactive ads, shoppable ads on CTV platforms, contextual targeting. Could you just remind us or give any color around the roadmap for unique ad units on Fubo or maybe just what the appetite is?

這是尼克的院長。祝賀這個季度。我們只是注意到新的前沿和強調互動廣告、CTV 平台上的可購物廣告、上下文定位。您能否提醒我們或為 Fubo 上的獨特廣告單元的路線圖添加任何顏色，或者只是胃口是什麼？

Yes. So obviously, we're looking at this very closely. A lot of this stuff is really early stages and isn't scalable. But right now, we're focused on a couple of elements. One is, we realized the value of display advertising in the platform, which we have -- right now, we're just serving sort of internal messages. But when we look at Roku and the sellout levels of Roku's display ads versus video, it seems to us to be quite appealing as sort of the next opportunity for us, which by the way doesn't impact any of our video inventory nor does it require incremental video viewership. So that's an area, we'll focus first. And then obviously, we're also focused on data integrations and then potentially selling our data, obviously on an anonymized basis.

是的。很明顯，我們正在密切關注這個問題。很多這樣的東西確實處於早期階段並且不可擴展。但現在，我們專注於幾個要素。一是，我們意識到我們擁有的平台中展示廣告的價值——現在，我們只是提供某種內部信息。但是，當我們查看 Roku 以及 Roku 的展示廣告與視頻的售罄水平時，我們認為這對我們來說似乎是下一個機會非常有吸引力，順便說一下，這不會影響我們的任何視頻庫存，也不會需要增加視頻收視率。所以這是一個領域，我們將首先關注。然後很明顯，我們還專注於數據集成，然後可能會以匿名方式出售我們的數據。

But beyond that, I think we're going to begin to leverage our computer vision technology with our acquisition of Edisn.ai, where we'll look to read what's available on screen, what people are watching on a frame-by-frame basis, and then be able to pull in advertisers that believe that it's contextually relevant. We think that that will probably have a greater impact in terms of brand value and direct sales of products. And so we'll be focused there, I think before shoppable ads. The problem with live TV and shoppable ads is that you'd have to stop the stream in order for somebody to interact with the video. I'm not sure that that's a very good experience.

但除此之外，我認為我們將通過收購 Edisn.ai 開始利用我們的計算機視覺技術，我們將在其中查看屏幕上可用的內容，以及人們逐幀觀看的內容，然後能夠吸引認為它與上下文相關的廣告商。我們認為這可能會在品牌價值和產品直銷方面產生更大的影響。因此，我認為在可購買廣告之前，我們將專注於此。直播電視和可購買廣告的問題在於，您必須停止流式傳輸才能讓某人與視頻互動。我不確定那是不是一個很好的體驗。

But throughout my career at ad sales, I've seen a lot of different products and second screen opportunities that looked really cool, but really didn't perform for advertisers. We're very lucky we have a very strong marketing team here. So as we think about our advertising capabilities, we typically talk through opportunities with our marketing team to make sure that we're going to create value for advertising partners. So you'll see from us over the next 6 to 12 months sort of a greater move into being able to provide a greater breadth of ad products and better packaging to drive sales and brand awareness for our brand partners.

但在我從事廣告銷售的整個職業生涯中，我見過很多不同的產品和第二屏機會，它們看起來非常酷，但實際上並沒有為廣告商帶來效果。我們很幸運在這裡擁有一支非常強大的營銷團隊。因此，當我們考慮我們的廣告能力時，我們通常會與我們的營銷團隊討論機會，以確保我們將為廣告合作夥伴創造價值。因此，在接下來的 6 到 12 個月內，您會看到我們在提供更廣泛的廣告產品和更好的包裝以推動我們的品牌合作夥伴的銷售和品牌知名度方面取得了更大的進步。

We have no further questions by phone. I'll turn it over to Alison Sternberg.

我們沒有進一步的電話問題。我會把它交給 Alison Sternberg。

Thank you, Operator. As of last quarter, we're going to take a handful of questions that came in through our Say Technologies portal from investors. And David, I'm going to address these to you. I actually think that they're related both of these questions, so I'm going to combine them into one, which is, what are your plans for long-term growth? And sort of related to that, can you discuss any new product launches or updates that are on the horizon?

謝謝你，運營商。截至上個季度，我們將回答投資者通過我們的 Say Technologies 門戶提出的一些問題。大衛，我要向你解決這些問題。實際上我認為它們與這兩個問題相關，所以我將它們合二為一，即您的長期增長計劃是什麼？與此相關的是，您能否討論即將推出的任何新產品發布或更新？

Yes. These are questions we think about, I would say, daily. The first and most important thing is that we have set a goal for ourselves to be breakeven in 2025. That is our ultimate goal. The second goal tied to that is that we need to reduce our cash burn. And so areas that we're -- I would say, in the short-term, are looking at, one is, we're continuing to work through our unified platform, which we've talked about, I think now on several calls. That unified platform is very important because it provides the foundation to be able to scale a business out globally at some point.

是的。這些是我們每天都在思考的問題。首先也是最重要的是，我們為自己設定了一個目標，即在 2025 年實現收支平衡。這是我們的最終目標。與此相關的第二個目標是我們需要減少現金消耗。因此，我們正在——我想說，在短期內，正在研究的領域，一個是，我們將繼續通過我們已經討論過的統一平台開展工作，我想現在在幾個電話會議上.該統一平台非常重要，因為它提供了能夠在某個時候將業務擴展到全球的基礎。

Again, we are not planning to do that. At the moment, we're acutely focused on hitting our profitability target. But in the short-term, what you'll see is, you'll see fresh apps sometime in the fall that's tied to that unified platform and that's all driven by new backend infrastructure and a new design system. So we're very excited about that. And obviously that would also help our French business, Molotov shortly after we've launched here in the United States.

同樣，我們不打算這樣做。目前，我們非常專注於實現我們的盈利目標。但在短期內，你會看到，在秋季的某個時候，你會看到與該統一平台相關聯的全新應用程序，而這一切都由新的後端基礎設施和新的設計系統驅動。所以我們對此感到非常興奮。顯然，在我們在美國推出後不久，這也將有助於我們的法國業務 Molotov。

From an AI perspective, we're starting to sync data and our first opportunity will be syncing our FanView data with what's on screen. It sounds relatively simple, but think about having multiple data sources coming in and either your video is behind or the data is behind and you want to make sure those are coming in for a better -- at the same time for a better consumer experience. We're also working on instant highlights. So think about condensed games within your DVR, where we'll be leveraging all of our AI opportunities there. And then as part of that when you're watching games, you might also receive some type of alert that there's a game that's on that might also have some very compelling moments to watch. And those will also be part of your DVR instant highlight opportunities. You could just go into that view and actually see different plays and all that obviously is powered by our own AI platform, which we've been working on now for about 8 to 12 months.

從 AI 的角度來看，我們開始同步數據，我們的第一個機會是將我們的 FanView 數據與屏幕上的內容同步。這聽起來相對簡單，但考慮一下有多個數據源進來，要么你的視頻落後，要么數據落後，你想確保這些數據源是為了更好的——同時為了更好的消費者體驗。我們也在研究即時亮點。所以想想你的 DVR 中的濃縮遊戲，我們將在那裡利用我們所有的人工智能機會。然後，作為其中的一部分，當你在觀看比賽時，你可能還會收到某種類型的提醒，提示正在播放的比賽可能也有一些非常引人入勝的時刻值得觀看。這些也將成為您的 DVR 即時亮點機會的一部分。你可以直接進入那個視圖，實際看到不同的遊戲，所有這些顯然都是由我們自己的人工智能平台提供支持的，我們已經在這個平台上工作了大約 8 到 12 個月。

And then one of the other pieces we're working on, in the short-term is our on-prem data center, where we're moving all of our video processing from the cloud to our own data center and that's going to happen in Q2. Very important move for us because it sort of solves many problems. The first problem is one cost. So we believe that there will be material savings over the next several years. And then on the consumer side, think of this as our ability to have greater control over our video quality, potentially latency, just as well as just a higher fidelity product. So all of those things are in the short-term.

然後我們正在努力的其他部分之一，在短期內是我們的本地數據中心，我們正在將我們所有的視頻處理從雲端轉移到我們自己的數據中心，這將在Q2。對我們來說非常重要的一步，因為它解決了很多問題。第一個問題是一個成本。因此，我們相信在未來幾年內將會節省材料。然後在消費者方面，將其視為我們能夠更好地控制我們的視頻質量、潛在延遲以及更高保真度產品的能力。所以所有這些都是短期的。

Looking way forward, again, don't hold me to this, I hope the product team is not paying close attention to what I'm saying, but we're going to double down on improving our core product. Again, it's one, we don't have the most performance platform, which as you know, right now we ranked #1 for Customer Satisfaction in the Live TV Streaming category by J.D. Power. And so we really focused on fluidity, higher quality, performance. And then I think right after that, again, this is not a 5-year plan, sort of, I would say in the next year or so, our advanced DVR.

展望未來，再一次，不要讓我堅持這一點，我希望產品團隊沒有密切關注我在說什麼，但我們將加倍努力改進我們的核心產品。同樣，它是一個，我們沒有性能最好的平台，如您所知，目前我們在 J.D. Power 的直播電視流媒體類別中的客戶滿意度排名第一。因此，我們真正專注於流動性、更高質量和性能。然後我認為在那之後，這不是一個 5 年計劃，我會說在未來一年左右，我們的高級 DVR。

So Instant Highlights is sort of something that's coming out, I would say, very soon. But we believe that the upgrade that we will provide over the next 1.5 years is probably the greatest upgrade that anyone has seen since the advent of the cloud DVR. I know that's saying a lot, but it's going to be a pretty powerful tool that will index your whole DVR. It will allow us to index actors, teams, and plays, and all kinds of things, companies, if you're following companies like Fubo or other companies in your portfolio, that'll give you a chance. And then obviously, deeper personalization, leveraging our AI to improve our recommendations and discoveries.

所以 Instant Highlights 是一種即將出現的東西，我會說，很快。但我們相信，我們將在未來 1.5 年內提供的升級可能是自云 DVR 出現以來任何人所見過的最大升級。我知道這說的很多，但它將成為一個非常強大的工具，可以為您的整個 DVR 編制索引。它將使我們能夠為演員、團隊和戲劇以及各種各樣的事情、公司建立索引，如果你正在關注像 Fubo 這樣的公司或你投資組合中的其他公司，那會給你一個機會。然後很明顯，更深入的個性化，利用我們的人工智能來改進我們的建議和發現。

So we have a lot going on and I guess if you want to just throw something out even further, I don't think we can deny conversational UI as something that is on our minds. But again, all of this is sort of further out. But our goal is to continue to set the standard for innovation in our industry as we have with 4K, MultiView, and a number of other features that I think are extremely exciting. So all great things as long as you focus on profitability I think to come.

所以我們有很多事情要做，我想如果你想進一步拋出一些東西，我認為我們不能否認對話 UI 是我們心中的東西。但同樣，所有這些都有些遙遠。但我們的目標是繼續為我們行業的創新設定標準，因為我們擁有 4K、MultiView 和許多我認為非常令人興奮的其他功能。因此，只要您專注於我認為的盈利能力，所有偉大的事情都會發生。

Thank you, David. Over to you, Operator.

謝謝你，大衛。交給你了，接線員。

Thank you. Ladies and gentlemen, this will conclude today's conference call. Thank you for participating. You may now disconnect.

謝謝。女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。