fuboTV (NYSE:FUBO) is a streaming substitute for cable TV. On fuboTV, you can get a package that closely resembles what you would get with a cable subscription but with more convenience, namely without a multi-year contract and an installation process that could take hours. 

The company is finding success and reported another monster quarter last week. fuboTV beat revenue estimates and raised targets for the rest of 2021. Let's take a closer look at the solid results from the second quarter (which ended June 30). 

A man watching something on his tablet.

fuboTV stock is up 10% following second-quarter earnings. Image source: Getty Images.

Firing on all cylinders  

fuboTV reported revenue of $131 million, up from $44 million in the same quarter last year. Its favorable price and convenience advantage over traditional TV bundles are attracting customers to the platform. Furthermore, a robust sports calendar drove fans to its sports-centric offering -- a great sign considering college football and the National Football League's season are about to get underway, which could drive another surge of viewers to fuboTV. 

It already boasts 682,000 paying subscribers, up by 92,000 from the previous quarter and 286,000 in the same quarter a year ago. The rapid growth gave management the confidence to raise the revenue target for 2021 to $565 million -- in other words, an increase of 116% from 2020. Impressively, the company is growing much faster than the virtual multichannel programming distributor market.

CEO David Gandler had this to say on the matter: "We have added approximately 396,000 net subscribers since the second quarter of 2020, resulting in subscriber growth of 138% year over year compared to just 31% growth for the entire virtual MVPD market over the same period."

Additionally, fuboTV's ad revenue bolted higher in the quarter, increasing by 281% to reach $16.5 million. Marketers covet access to the company's subscriber demographic with an average age of 42 and income of $85,000. Advertising on fuboTV is similar to cable TV with the added benefit of performance measurement and customer targeting.

What this could mean for investors

As impressive as the quarter was, it's important investors remember the company is still not profitable. It progressed toward this end by improving its adjusted contribution margin from 5.1% in Q2 2020 to 8.3% in Q2 2021. However, it could be a while longer before it starts reporting profits on the bottom line. 

That fact didn't faze investors, and the stock shot up by roughly 10% following the release of quarterly results. Looking out over the longer run, fuboTV will continue attracting viewers who want the bundled offering of a traditional TV subscription with a streaming provider's convenience and better price. The advantage arises because a streaming provider does not need to install a set-top box or a satellite dish for you to get access to channels.

The stock is trading at a forward price-to-sales ratio of 8.3, near the higher end of its range all year. If you're looking for a hypergrowth stock with the potential for massive gains and are willing to stomach the risks, then you can add fuboTV to your list of stocks to watch. 

 
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