Shares of FuboTV (FUBO) are on the rise on Wednesday after the company reported better than expected quarterly results, with revenue up 135% from a year ago and subscribers up 105% year-over-year. Commenting on the news, Evercore ISI analyst Shweta Khajuria called the virtual multichannel video programming distributor's "clean beat and raise" first quarter report "a home run."

RESULTS: FuboTV reported first quarter losses per share of (59c), adjusted EBITDA of ($46.5M) versus ($36.9M) last year, and revenue of $119.7M, with consensus at $103.88M. "The first quarter of 2021 was an inflection point for FuboTV," said David Gandler, co-founder and CEO. "For the first time in any first quarter, we reported sequential revenue and subscriber growth, despite past seasonality trends. This tells us that consumers are increasingly cutting the cord." The company also reported first quarter subscribers at 590K, up 105% from last year, Current Hours Streamed of 228K, up 113% from last year, and ARPU of $69.09, up 28% from last year.

FuboTV said it sees second quarter revenue of $120M-$122M, with consensus $98.37M. "Our second quarter revenue guidance takes market seasonality into account with revenue of $120-122 million, the midpoint of which represents an increase of 174% year-over-year. Similarly, our second quarter subscriber guidance includes 600,000-605,000 subscribers, up 111% year-over-year at the midpoint," the company added.

Additionally, FuboTV raises its full year 2021 revenue view to $520M-$530M, with consensus $472.63M. "Similarly, we are increasing our end-of-year subscriber guidance to 830,000-850,000, up 53% year-over-year at the midpoint, compared to an increase of 40% in our prior guidance. This subscriber outlook implies full year 2021 net additions of at least 282,000, 22% higher than our full year 2020 net additions of 232,000," the company said.

'HOME RUN': In a research note to investors, Evercore ISI analyst Shweta Khajuria noted that FuboTV reported first quarter revenue, subscribers, and ARPU that were all "well above the Street" in what she calls "a clean Beat & Raise" quarterly report. FuboTV also achieved sequential subscriber and revenue growth for the first time in any first quarter, which Khajuria pointed to as evidence of a decrease in seasonality that has been seen in the past. The analyst, who also noted that the company's second quarter and full year 2021 revenue and subscriber guidance were "solidly above the Street," reiterated her Outperform rating and $30 price target on FuboTV shares following the "home run" report.

Needham analyst Laura Martin also kept a Buy rating and $60 price target on FuboTV after the company's better-than-expected first quarter results. FuboTV again exceeded commitments and guided metrics with 135% revenue growth and 28% ARP growth, while churn fell by 105bps to 10% per month, the analyst highlighted. Martin believes the timeline for FuboTV's wagering business launch also remains intact for the third and fourth quarters.

Wedbush analyst Michael Pachter expects cord-cutting and cord-shaving to continue for the foreseeable future, and thinks that a sizeable portion of the population will grow up as “cord-nevers,” preferring customizable bundles of content to pre-determined MVPD programming. FuboTV’s ability to offer comprehensive entertainment and sports viewing is a real differentiator, and its focus on the sports viewer/bettor should serve to accelerate subscriber growth, the analyst contended. As the company learns more about the viewing habits of its audience, it should be able to exploit its data set to drive ad ARPU even higher, and he expects FuboTV to break even by the end of 2023 or early 2024. Pachter reiterated an Outperform rating and a $53 price target on the shares.

PRICE ACTION: In Wednesday afternoon trading, shares of FuboTV have gained over 11% to $19.62.