Q3 2023 FuboTV Inc Earnings Call
Ladies and gentlemen, thank you for standing by my name is Sharon and I will be accomplished operator today.
At this time I would like to welcome everyone to the football Q3 2023 earnings call.
All lines have been placed on mute to prevent any background noise. After.
After the Speakers' remarks, there will be a question and answer session.
If you would like to ask a question during this time.
Press Star followed by the number one on your telephone keypad.
If you would like to withdraw your question Press Star one again, thank you all.
I'd now like to turn the call over to Alison Sternberg Senior Vice President of Investor Relations.
Please go ahead.
Thank you for joining us to discuss <unk> third quarter 2023 with me today is David Gambler co founder and CEO of stood about and John do you need a CFO for about full.
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 Docs Blue Bell Dot TV.
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 food both strategy.
And John will cover the financials and guidance.
Then we will turn the call over to the analysts for Q&A.
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 business strategy, and plans industry and consumer trends and expectations regarding profitability.
Yeah.
These forward looking statements are subject to certain risks uncertainties and assumptions.
Important factors that could cause actual results to differ materially from forward. Looking statements include those discussed in our filings with the SEC.
Except as 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.
During the call. We may also refer to certain non-GAAP financial measures.
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are also available in our Q3 2023 earnings shareholder letter, which is available on our website at IR docs the about dot TV.
With that I will turn the call over to David.
Thank you Alison and good morning, everyone. We appreciate you joining us today to discuss <unk> third quarter 2023 results.
We are very pleased with our results, which we believe continue to show the strength of <unk> aggregated sports first content and leading product features.
In the third quarter North America, we delivered $313 million in total revenue up 43% year over year, and a record 1.477 million paid subscribers up 20% year over year.
Our North American AD business continues to grow as a result of our expanding focus on direct sales alongside our already successful programmatic business.
We delivered $33 million in North America AD revenue during the quarter, an increase of 34% compared to the same period last year.
We noted on our last earnings call that we expected the AD market would experience an acceleration in the back half of 2023 and are pleased that trends are moving favorably in that direction.
<unk> growth trajectory gives us continued confidence in our full year performance. Therefore, we are raising our 2023, North American guidance to $1.319 billion to $1 billion $324 million in total revenue representing 34.
<unk> year over year growth at the midpoint and $1 million 584000 to $1 million 599000 paid subscribers, representing 10% year over year growth at the midpoint.
In addition to strong results across our key performance metrics. We also continued to make significant progress towards our 2025 positive cash flow goal.
Third quarter market continued healthy year over year improvement in cash usage as a result of our focus on unit economics and cost discipline, we meaningfully reduced net loss by $21 million and delivered a 619 basis point reduction in subscriber related expenses or <unk>.
Sorry, as a percentage of revenue to 89%.
Additionally, we reached 6% gross margin and 884 basis points year over year improvement.
We closed the year with $266 million in cash cash equivalents and restricted cash and we believe have sufficient liquidity to fund our current operating plan as we progress towards our 2025 call.
The cable TV and streaming space experienced a true inflection point during the third quarter with the creation of new content distribution models following the charter Disney dispute.
Since the first quarter of 2021, we have stated that the industry would see a shift from unbundling of content back to aggregation.
More recently many in the industry have called it the great re bundling.
We have been steadfast in this position over the last two and a half years and are confident that bundling is the best way consumers can extract value, while providing media companies a profitable path to monetizing their content portfolios and sports contracts.
Going a step further we believe the industry will shift towards super aggregation, meaning distribution platforms will start to package content in different ways and deliver it to consumers at multiple price points. This could mean, an entry level Avon are fast here to a skinny bundle comprised of multiple premium channels and <unk>.
<unk> services to the full virtual mvpds bundle with of course, AI contributing to a personalized streaming experience.
<unk> goal is to be a super aggregator and we are well on our way our aggregated sports first offering coupled with diverse news and entertainment programming is delivered through a single app that is customized to our users.
We expect to deliver an even more personalized <unk> experience as we focus on our technology advantage in creating must have product features like we did with multi view and <unk> streaming.
First on our roadmap is platelets, which leveraging our proprietary video AI technology will allow the user to view and select the most important moments of live sports events recorded on their DVR such as <unk>.
Just the scoring drives from a recorded football game, where all the three point shots from a recorded basketball game.
We believe this compelling value proposition aggregated content delivered through a personalized streaming experience that will make <unk> the gateway to TV and.
In summary, our third quarter results progress to our 2025 positive cash flow goal and evolving market dynamics provide us with more confidence than ever that <unk> business model will provide value for our consumers our content and distribution partners and of course, you our <unk>.
Our holders I will now turn the call over to John <unk> CFO to discuss our financial results in greater detail John.
Thank you David and good morning, everyone.
The third quarter furthers the momentum we experienced over the first half of the year, including healthy topline and subscriber growth, resulting in meaningful improvements across many of our kpis and providing us with confidence in our ability to achieve profitability.
Total revenue for the quarter increased 43% to $320 9 million driven by a 43% revenue growth across North America, and 45% revenue growth from rest of world.
This represents a 14% upside against the midpoint of our Q3 revenue guidance.
We ended the third quarter with $1 $47 7 million subscribers in North America, representing 20% growth year over year and over 411000 subscribers in the rest of world, representing 15% growth year over year.
On the monetization front, our <unk> North America reached $83 51.
An all time high while rest of World ARPA was $6 98.
Growth in subscribers and <unk> allowed us to exceed the midpoint of our Q3 guidance.
Turning to advertising. Despite the continued challenges many advertising messages are facing I am pleased with our ability to deliver $33 million in advertising revenue across North America, a 34% increase versus the prior year period.
Accordingly, we continue to make material progress on the operational side of the business by lowering expenses and increasing efficiencies.
These efforts resulted in a near 900 basis point improvement in gross margin to 6%, marking our fourth consecutive quarter of positive growth margin.
The topline growth and improvements across the income statement led to a $21 million year over year reduction in net loss to a loss of $84 4 million, resulting in a net loss margin improvement to negative 26, 3% favorably comparing to a negative 47% net loss margin in the pre.
Near year period, demonstrating that we are making meaningful progress towards our goal of becoming profitable.
This led to a third quarter 2023 per share loss of 29.
A significant improvement compared to a loss of <unk> 57.
In the third quarter of 2022.
Third quarter adjusted EBITDA loss also improved to a loss of $61 5 million compared to a loss of $83 million in the third quarter of 2022.
While adjusted EBITDA margin was minus 19, 2% a significant improvement from minus 36, 9% in the prior year period.
This resulted in an adjusted EPS loss of 22.
An improvement compared to an adjusted EPS loss of 46 and.
In Q3 2022.
As it relates to our balance sheet. We believe we continue to have the necessary liquidity to invest in the business and support our path to profitability.
And in the quarter with $266 million of cash cash equivalents and restricted cash in.
In addition, our ongoing efforts to identify efficiencies and maximize leverage across the business resulted in a $40 million improvement in free cash flow.
Further as David mentioned these results demonstrate the noteworthy progress we have made across our operating expenses all of which have come down as a percentage of revenue and in some cases on a dollar basis as well.
As we remain disciplined in our investments and deployment of cash.
As we continue to grow subscribers optimize our pricing we expect to see continued leverage on the SRA line, which decreased from 95% to 89% of revenue in Q3 2023 versus the prior year period.
Now turning to guidance.
For the full year 2023, we are once again, raising our guidance for North America.
We expect full year 2023 subscribers of $1 584 to $1 $5 9 million, representing 10% year over year growth at the midpoint in the full year 2023 revenue of 1319 to 132 4 billion representing 34% year.
For year growth at the midpoint.
In the fourth quarter, we expect revenue of $385 million to $390 million, representing 24% year over year growth at the midpoint.
For rest of World, our full year 2023 guidance now projects 388 to 393000 subscribers, representing a 7% year over year decline at the midpoint and revenue of $32 million to $33 million, representing 33% year over year growth at the midpoint.
Note that our prior year subscriber count was positively impacted by the 2022 World Cup.
In the fourth quarter, we expect revenue of $7 6 million to $8 6 million, representing 13% year over year growth at the midpoint.
In summary, we believe our <unk> results provide further evidence that the operational and go to market initiatives. We've enacted over the past few quarters are gaining momentum in transforming our business.
These actions are driving improving trends and we are confident <unk> has the foundation necessary to further grow and improve across every facet of our business.
And positioned us to deliver enhanced value to shareholders.
I would now like to open the call to questions operator.
At this time I would like to remind everyone wanted to ask a question.
<unk> Press Star then the number one on your telephone keypad, we will pause for just a moment to compile the Q&A Boston.
Your first question comes from the line of <unk> with Evercore.
Line is open.
Yeah.
Okay. Thank you for taking my question.
Could you. Please comment on the overall brand sentiment advertiser sentiment that you are seeing and hearing and any commentary on how the AD revenue trended intra quarter. So do any degree you can comment on month over month revenue growth or trends.
Versus last year and then.
Any.
Thoughts on AD.
Any impact from the Israel War at all if at all and then finally any commentary on different impact from different verticals, how what are you seeing.
In auto versus perhaps CPG or travel and financial services. Thanks, a lot.
Alright. This is John maybe I'll start there is a lot there. So if I Miss anything please feel free to come back, but let me start on the categories. Maybe I'll go in reverse chronological order for the for the third quarter.
Ted is that the comment you made on the prepared remarks, we put up a 34% growth I would say the stronger categories within that four <unk> where call it retail E comm.
Auto was actually up strong mid single strong double digits, I should say home and garden was up solidly in <unk> pharma on the weaker side I would include call it food and beverage insurance and tax and if I go to the fourth quarter I would say that we're continuing to see some weakness in tech.
Insurance and maybe some financials.
And then I would see say general strength in the call the auto and retail E comm categories to date.
In terms of the war I would say a couple of things one is that we're.
We're not seeing much in terms of cancellation necessarily at this point I think what we're hearing in the marketplace suggests there is a bit less visibility as I think clients are just holding money are attached to the vast to see how things play out.
In terms of the shape of the quarter call. It July August September I would say the variance by months wasn't too dissimilar I would say the strongest month was July.
The slowest month with September, but when you grow 34% clearly they are all pretty strong.
I'm not sure if there's anything else that I may have missed but feel free to ask.
Yes, I think on top of that.
Great. Thanks, John I guess anything you've seen so far in terms of how October trended and what youre hearing for the rest of the quarter.
As it relates to add Stan Thank you.
Yeah sure Yeah, I would say so I would say October came in a little bit lighter than what we saw for the third quarter and any specific months. So if I give you a sort of some guardrails I would say is if <unk> grew at I think it was around 5% of <unk> was 34 call. It <unk>, probably looks somewhat closer to three up to <unk>.
Okay got it thank you very much.
Youre welcome.
Your next question comes from the line of Darren <unk> from Ross. Your line is open day.
Hey, guys. Thanks for taking my questions.
Just following up on that.
Can you kind of speak to with the SaaS, you've kind of seen.
Direct ad business.
Like how confident are you is just like your AD business, having legs beyond.
The fourth quarter, I guess said another way do you feel like the business has pivoted or reflected in the positive way to kind of longer term.
Yes, Darren this is David.
Thank you for the question.
We have been very focused on this part of our business I think can we touch base with you throughout the year, we've made some significant changes.
And the backend meaning.
We've been really focused on developing our team increasing the size of the team and refocusing from programmatic to direct sales I think we were one of the first to actually talk about the relevancy of direct AD sales versus programmatic to really drive.
Revenue and I think we've executed really well on that since we've talked about it in March with you.
And we're very focused on continuing to.
<unk> talked to our third party vendors are programmatic partners and.
In many cases, we have revised some of our agreements to ensure that when we do decide to go programmatic that those rates will be reflective.
Reflective of where we are in our business and what our goals are with respect to driving CPM and advertising ARPA. So I think execution has been very strong in terms of our product roadmap on the advertising side. We're looking to continue to develop our inventory we're starting to learn more about.
Advertising in general in terms of what our partners are looking for and how they want to engage with our very premium audience as you recall we skew.
Men 18 to 49.
So that's a very difficult demo to reach and I think we will continue to develop opportunities with advertisers. There. The last thing I'll mention is that we have been adding fast channels as you know throughout.
The first half of the year.
<unk>.
Yes.
<unk> advertising revenue coming in from from those channels.
<unk> been quite strong, which as you can imagine we have.
Greater share of inventory, there and therefore, it's having a greater impact. So again, we're very focused on really developing the 100 plus hours of viewership on the platform to really drive monetization and Darren maybe I had a couple of more points to that.
We added three sales resources during the second quarter. We've added sales also in the first quarter and so when you roll that together, we really improved market coverage and penetration of the Holocaust and that I would say it came together call. It mid second quarter and so the team really hit the ground running as a group in the third quarter and we saw that there.
So I think Thats also position us differently in the market and I think you've also been focused on call. It our direct and programmatic guaranteed and I'll just give you some flavor there in the third quarter of this year that number was call. It around 20% of the total whereas it was somewhere around a third of that in the third quarter of last year, So a pretty meaningful increase.
Yes.
Two more for me.
In terms of the operating leverage it looks like you grew your sales and marketing about $5 million year on year, but sales were up $100 million. So.
Two questions. There one Blake is that sustainable from an operating leverage perspective, and then two with the whole charter Disney Spat Lake has brand awareness of <unk> improved that you feel like that has legs beyond the current period.
Yes, Darren this is David.
Of course.
Brand awareness has improved dramatically I mean, if you think about just organic traffic to <unk>. It continues.
Use to grow we have more advertising partnerships that John has already been talking about the difference in the expense categories that were working with.
And so of course, the charter Disney dispute allowed us to get in front of more customers.
But thats something thats been happening and you can see that I would say just through our quarterly results and you're seeing <unk>.
You know over index and market share of net adds.
So this is something that I think we will continue to progress.
And that is.
Largely related to the fact that we have.
I would say a very strong product.
Have other players in the market that are not only copying our features and I'm sure you know who I'm talking about Theyre also even copying the naming and branding all of those features. So we think we're in a very strong position. We think we will continue to grow and.
And we think the charter dispute actually.
Helps bring.
The market closer to where we think it is going to be and that is the aggregation space. So.
Again also just if you look at the to the engagement hours in the platform again, well over 100 hours.
Relative to some reports that I've seen where.
Other cable companies are in the sort of 60 to 75 hour range. So across the board I think.
Kpis are really.
Demonstrating that the brand is developing nicely and we're doing it very cost efficiently. If you think about how competitive September was I mean, there were a Sunday ticket offers.
Everywhere between I've seen offers that were 90% off all the way I mean, even as of last week 50, 60% off and so to be able to compete.
On subs and also be the leading most downloaded app on Amazon fire I think in September those are just key metrics that we look at too.
It really speak to the development of our brand across the ecosystem Hi, Darren ill go to your first question on that and look as you know we don't guide by line item, but the team has just done a really great job of driving subscriber growth in.
I don't want to get too specific for obvious reasons, but that includes investing in lower cost channels and also we put in some head count that drives high returns.
We don't do a significant amount of TV advertising, but some of the pressures you've heard about on linear have also helped us in terms of CPM and say, you've probably seen some of our thoughts on.
On television and then I'd say, taking a step back.
The spirit of your question, we expect our sales and marketing line to continue to demonstrate operating leverage on an annual basis going forward.
Yes, and it has as.
As you follow the story of the last three quarters.
Consecutively on a year over year basis, you've seen that decline so.
This has been I.
I would say relatively linear in that respect.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Your next question comes from the line of Knicks English with Stephens, Inc. Your line is open.
Yes, Hey, guys.
And congrats on the report here just the subscriber count obviously pretty significant beat you had the Disney charter dispute that was pushing users into the <unk> and <unk>.
<unk> channel can you just provide more detail on just talk about the upside where you think most of it came from what do you attribute.
To what to what do you attribute the Disney charter dispute.
To the growth that you've experienced and how sticky do you expect those customers to be that did migrate over.
Yes.
Thank you for the question look it was as you said it was an extremely strong quarter, we had anticipated a strong quarter, we typically do.
At the beginning of any sports season, just given our brand positioning I would say.
The charter dispute was very helpful. In many ways I think the least impact that it had is actually on sub growth.
The it was actually I would say immaterial from a net adds perspective, because the dispute lasted I think just just under 10 days or 11 days.
Starting from August 31, and it was resolved right before Monday night football and typically the way our funnel works is once we get people inside the platform. The goal is to get them to use.
Different feature sets.
And also to ensure that we are.
Bubbling up content that makes sense for users in order to drive retention. So we didn't really have a chance to do that.
Just given the nature of that dispute ending before football so.
In terms of just what's driven and I think you guys know I mean were very strong at the.
Beginning of the fall sports calendar I think this year just like any year.
NFL, obviously, a key driver, albeit that this year I think is quite special because the pressure.
From Youtube TV I think was up.
Extraordinary.
And I just mentioned on the last question just in the number of discounts the amount of discounting.
Out of money that was put into marketing.
It didn't really have.
Any impact on our ability to drive subs I think another piece of it is at the college football season also picked up pretty quickly. This fall I think there was some interesting games that have also been strong drivers, but again just to highlight the Disney dispute.
Drive as many as we had intended just due to the length of the <unk>.
<unk> resolution.
Got it Okay. Well then then all that considered then.
Maybe maybe.
The World Cup with such a driver last year, but I guess the guide that you're implying for fourth quarter. Obviously Pete's numbers are strong guide, but I guess, the sequential improvement from <unk> to <unk>.
It would suggest that maybe there is there is still.
Incremental subscribers.
Would have expected maybe a larger guide from <unk> to <unk>, given what you've done historically.
And then I was thinking maybe this charter dispute had a pull forward effect and that's why the <unk> guide isn't as significant but just maybe you could just talk about the <unk> subscriber guide how youre thinking about that relative to what you just put out and then maybe with reference to two I think you guys increased last year sequentially 200.
<unk> thousand subscribers from <unk> to <unk> just.
In consideration of what Youre guiding this time around.
Okay.
Why don't I start this is John and if David wants to come in at the end of the obviously you could feel free but its always hard to know in terms of the pull forward.
But I would say as you know we've been focused on improving profitability.
And so we started the year expecting North America salvage.
That $152 million at the midpoint of the guidance revenue of call. It about one 2% or $1 1 billion at the midpoint and so to your point. We're now forecasting 159 1 million service at the midpoint revenue of $1. Three two so we're now expecting sub growth of call it 10% for the year sure.
Pointed out the World Cup that did benefit us pretty meaningfully last year and so if we adjust for that it's more like call. It a low double digit to low teens type of growth year over year.
And so given the sub growth that we're seeing and how is the cadence came throughout the year, we're being slightly less aggressive on marketing to further drive that profitability, but again hard to know on the pull forward, yes, I would say look I think you've.
You guys have seen how we how we've guided throughout the year.
<unk>.
Again, just thinking about how dynamic our industry is with all the different changes that are happening.
<unk> weekly.
I think we want to be a little bit conservative going into the end of the year.
As we've said now numerous Lee we're very focused on profitability and so the goal is to.
Drive revenue over subs, because that's always been it's always been the opposite.
And in order for us to hit that 25 target we want to make sure that we're focused on customers that are profitable versus just subscribers for the sake of subscription. So there's some conservatism in that and obviously, we'll do our best to continue to remain efficient.
Your final question comes from the line of James Goss with Barrington Research. Your line is open.
Good morning, this is Pat on for Jim.
And a follow up question with regards to <unk>.
Fast channels.
I'm wondering the extent to which those are tailored for <unk> and then kind of like.
Regards to.
Engaged on those channels has fared relative to some of the.
Other content relationships you may have walked away from.
Given your focus on kind of more sports for sports the first content.
Yes. This is David why don't I start John.
Look I think.
This was this was an area, where we definitely wanted to experiment a little bit I think unlike other platforms that have fast channels. We've limited to about I would say under 150 or so most platforms have 300 plus.
And it's exactly as you said the goal was to augment our current entertainment lineup and I think from the onset even back to the IPO. We've always said that the entertainment content on the platform as fungible and what we've seen is although we have removed.
Certain content entertainment content from the platform, we have seen the fast channels.
Really take some of that share of viewership and.
As I said before it's really allowed us to drive advertising revenue above and beyond where we would it also gives us more inventory.
So if you think about broadcast and cable with broadcast networks, we don't really have any inventory.
<unk> in this case with fast channels.
We are we're getting rough.
Roughly around 50% of the inventory and the interesting thing is we can use our platform to drive viewership.
To a number of different.
Pieces of content and so obviously, it's in our best interest to drive people to fast channels. When we know there are certain genres that they really enjoy so which is what we've been doing.
And then John if you want to add anything there. The other thing I would add to that actually have had is that.
The team has spent a lot of time looking at purchase scrap reviewing metrics and.
And the lag from what I can share with you on that front is that the viewing hours on a per sub basis are up somewhere call. It in the high double digits to around 100% year over year.
Okay.
Thank you.
I guess the last question I had was how you guys see distribution relationships evolving as more content is incorporate onto some of the <unk> services.
Yes.
As David look.
As you can imagine.
It's a very industry interesting industry right, it's not like.
The airline industry, where Boeing manufacturers planes American airlines buys planes and sells tickets.
And so forth this is where an industry where.
Everyone is distributing everyone is producing.
And everyone is at the same time partnering and competing so it's a very.
Very complex space I think our relationships continue to improve.
On multiple levels with distributors and I think the charter Disney dispute is a great example of two companies that basically compete.
For customers in the pay television space, but at the same time, we've found ways to work with one another and I think that as time goes on.
Many in the industry believe that not only do we have a strong technology platform may be the strongest in the world. We have a wonderful product that we have a fantastic team and we're able to really execute not only well, but very quickly and so I'd anticipate that relationships with <unk>.
Large tech companies could be on the horizon as well as other distributors and content partners to be able to help them achieve.
Their goals as well as ours and I think from from from what we've attempted to do from the beginning as we always said that we play a very important role in this industry. Our job is to ensure that customers get the best content at the right time for the best price.
And on the opposite side, we want to make sure that our content partners are monetizing their portfolio and sports contracts and so I think.
What you're starting to see potentially with this charter dispute is that we are in fact that partner, so I do anticipate better relationships stronger relationships.
Executions and different types of treatments as we go forward.
Thank you.
Great. This is Alison Sternberg I just wanted to thank everybody for your time this morning, and your thoughtful questions.
And we're looking forward to speaking with everyone again, when we report the fourth quarter.
In February but before we conclude the call I did want to take a few questions that came in through our state technologies portal.
And the first of which I think comes as no surprise and I'll direct it to both David and John which is how are you progressing towards profitability.
This is John why don't I start with that.
Look I'd say, we're progressing very well and if you look at page three of the release there is.
There is a bar chart that actually shows that progress but.
Dig a little deeper on that let me share a couple of Kpis that our teams are really focused on.
On a year to date basis through the third quarter call. It meaning September 30, adjusted EBITDA for our global streaming business has improved by nearly $100 million.
Our EBITDA, our EBITDA margin has improved by nearly 20 percentage points.
And I would just add that our incremental EBITDA margin or meaning revenue or EBITDA over our revenue is about 22%. So I'd say, we feel really good about directionally, where we're headed yes, I would say.
I think one of the big.
Areas of focus I think for most investors and specifically for the company is our content cost which is $1 billion.
Line item and one of the things that I look at his contribution profit and if you look back the last six quarters consecutively. We've seen an expansion of contribution profit that will continue as we work through our agreements.
We're looking forward to achieving our 2025 goal and I think we are.
Pacing.
Well towards that goal.
Excellent. Thank you both and the second question is more of a macro question.
And I'll direct this to you David.
What is the company's strategy when it comes to dealing with companies like Amazon and Apple entering the streaming of sport.
Yes look.
Again this is very similar to.
And analysts question that was just asked.
Again, everybody is competing in working together to drive results I think one thing is quite clear in order to be successful in the streaming space you have to distribute to as many people as you can see your content.
And what has become clear over time is if you look at all the plus services in aggregate.
They have lost I think now it's north of maybe $10 billion.
And so the model that we continue to promote which is one of aggregation is a model that we think ultimately allows all the participants in the ecosystem.
Two to create value.
So with respect to the to the two players that were actually mentioned again, we have wonderful relationships with both of them.
We still have over 50000 sporting events on the platform the.
The fact that we last Thursday night football.
Now in its second year had very little impact I would say no impact if you look at the net adds on a year over year basis in the double digit growth we've been able.
Two two.
<unk>.
No.
We're very comfortable with where we are today and the amount of sports content that we have on the platform and we look forward to continuing to build relationships, both with customers and tech platforms.
Great. Thank you David.
Thank you operator this concludes our third quarter call for today again, thanks to everyone.
For your thoughtful questions and we look forward to speaking with everybody soon.
[music].