fuboTV Inc. (FUBO) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to fuboTV's 2019 Annual Meeting of Shareholders. I'm Edgar Bronfman, Jr., the Executive Chairman of the Board of Directors of fuboTV, Inc. We especially welcome you to this virtual meeting of shareholders and hope that you and your families are safe and well at this unique time in our nation's history. Today's meeting will consist of the formal meeting to address the proposal set forth in our proxy statement. Questions about the company's business may be directed to Brinlea Johnson from the Blueshirt Group. I will act as Chairman of this meeting. The Board of Directors has appointed Gina Sheldon, our General Counsel and Corporate Secretary, to act as secretary of the meeting and to record the minutes. I'm pleased to introduce the members of the Board of Directors who joined us remotely: David Gandler, our Chief Executive Officer; Pär-Jörgen Pärson; Daniel Leff; Henry Ahn; Ignacio Figueras; and Laura Onopchenko. Also with us remotely today are Simone Nardi, our Chief Financial Officer; Brinlea Johnson of The Blueshirt Group; Mark Bass of Wilson Sonsini Goodrich & Rosati; John Cacomanolis of Anthony PLLC; Michael Sambus and Patrick Edgar of KPMG, our independent registered public accounting firm; and [ Shakira Singleton ], a representative of Issuer Direct. I will now turn the meeting over to Gina Sheldon who'll conduct the formal part of the meeting.

Good morning, and again, welcome to fuboTV's 2019 Annual Meeting. The meeting is being held in accordance with the company's bylaws and Florida law. During the meeting, we will address the matters described in the proxy statement, which was first made available to all shareholders on or about November 19, 2020. A copy of our proxy statement is available on the virtual meeting website, the Investor Relations section of the company's website and the SEC website. I have proof of affidavit that notice of this meeting has been duly given and that the notice of the Annual Meeting of the Shareholders, proxy statement and proxy were mailed on or about November 19, 2020, to the shareholders of record on November 13, 2020, the record date for this annual meeting. Shakira Singleton, a representative of Issuer Direct, has been appointed as our inspector of election for this meeting. The inspector of election has a complete list of the holders of record of the outstanding shares of the company's common stock on the record date. Shareholders wishing to review a copy of the list are invited to submit a request through the Questions feature on the virtual meeting portal. Based on the information provided by the inspector, I can confirm that we have present remotely or by proxy a sufficient number of shares to constitute a quorum. Therefore, the meeting is duly constituted, and we may proceed with business. If you have previously submitted your proxy, it is not necessary that you can complete another proxy to vote. Those shareholders who do have not submitted proxies and who wish to vote remotely or if you want to change your vote, you may do so through the Vote My Shares button on the virtual meeting portal. It's now time to move on to the business. The first item of business is the election of the directors. As indicated in the company's proxy statement, David Gandler, Edgar Bronfman, Jr., P.J. Pärson, Daniel Leff, Henry Ahn, Ignacio Figueras and Laura Onopchenko are nominated by the Board of Directors to serve as the company's directors with terms expiring at the next annual shareholders meeting. The Board of Directors recommend vote for, for each of these 7 nominees. The second item of business is the advisory vote on the compensation of our named executive officers. Although this vote is nonbinding, the Board of Directors will consider the outcome when making future compensation decisions for each of our executive officers. The Board of Directors recommends voting for the approval of the compensation of our named executive officers. The third item of business is the advisory vote on the frequency of future advisory votes to approve the named executive officer compensation. Shareholders may indicate whether they would prefer that we conduct future nonbinding advisory votes to approve the compensation of our named executive officers every 1, 2 or 3 years. Although this vote is nonbinding, the Board of Directors will seek to consider the outcome when deciding how frequently we should seek future nonbinding advisory votes to approve the compensation of our named executive officers. The Board of Directors recommends a vote to hold future shareholder votes on the compensation of our named executive officers every 1 year. The fourth item of business is the approval of the 2020 Plan Proposal. The 2020 Plan Proposal would approve the company's ability to grant incentive stock options under our new equity incentive plan. The 2020 Equity Incentive Plan or the 2020 Plan, including an increase in the number of shares of common stock reserved for future issuance under the 2020 Plan. We believe that the approval of the 2020 Plan Proposal is important to our continued business. Awards provided under such plan are vital to our ability to attract and retain outstanding and highly skilled individuals and motivate employees, directors and consultants to achieve our goals. The Board of Directors recommends voting for the approval of the 2020 Plan Proposal. The fifth item of business is the ratification of the form of indemnification agreement, although neither shareholder approval nor ratification of the form of indemnification agreement is required by law, the Board of Directors believes that it is appropriate to submit the form of indemnification agreement to the company's shareholders for ratification because the members of the Board of Directors and executive officers are parties to and the beneficiaries of the rights contained in the indemnification agreement. The Board of Directors recommends voting for the ratification of the form of indemnification agreement. The sixth item of business is the ratification of the appointment of KPMG LLP to serve as the company's independent registered public accounting firm for the fiscal year ending December 31, 2020. The Board of Directors recommends voting for the ratification of KPMG as the company's independent registered public accounting firm. We will now proceed to the question-and-comment period. You will have an opportunity to vote after discussion has taken place. I remind you that the meeting has been called for the purpose of considering these 6 items of business previously described. Accordingly, all questions and comments should be confined to these matters at this time. The virtual meeting questions feature is open for shareholder questions or comments concerning this business before the meeting. [Operator Instructions] At this time, I will now turn the meeting back over to the Executive Chairman for the voting.

Thank you, Gina. The polls are now open. If you are voting today, you must submit your votes online at this time in order for them to be counted by the inspector of election. The inspector of election will not accept votes or change -- or any change or revocations submitted after the closing of the polls. We will pause the meeting for a minute or so to allow for final voting. Let's take that pause now. [Voting]

We will give it just a few more seconds. [Voting]

Okay. It is now 12:09 on December 14, 2020, and the polls for each matter to be voted on at this meeting are now closed. The proxies and votes will be tabulated by the inspector of election. I will now turn the meeting back over to Gina.

Thank you, Edgar. And with regard to Proposal 1, the votes cast for each David Gandler, Edgar Bronfman, Jr., P.J. Pärson, Daniel Leff, Henry Ahn, Ignacio Figueras and Laura Onopchenko exceeded the number of votes passed against each such nominee. Each of the 7 nominees has been elected. With regard to Proposal 2, the advisory vote to approve the compensation of our named executive officers for fiscal 2019, the proposal has passed. With regards to Proposal 3, the advisory vote on the frequency of future advisory votes to approve named executive officer compensation, Option 1 passed. With regard to Proposal 4, approval of the 2020 Plan Proposal, the proposal passed. With regard to Proposal 5, the ratification of the form of indemnification agreement to be used with each of our directors and officers, the proposal passed. With regard to Proposal 6, the ratification of KPMG LLP to serve as the company's independent registered public accounting firm, the proposal passed. The final results of voting will be set forth in the report of the inspector of election and will also be reflected in the current report on Form 8-K to be filed with the Securities and Exchange Commission. I will now turn the meeting back to our Executive Chairman, Edgar Bronfman.

Thank you very much, Gina. I appreciate it. This concludes the formal business of the Annual Meeting of Shareholders. The meeting is now formally adjourned. Again, general questions from shareholders regarding fuboTV may be directed to The Blueshirt Group for FUBO. Thank you, and we'll now answer those questions from shareholders.

Thank you, Edgar. And thank you to those of you who have submitted questions. We have a nice set here. I'll have me kick it off. First question, how do you believe the growth of the FUBO service will compare to other leaders who have an established customer base?

Thank you. Well, if you go back to 2019 third quarter, FUBO managed to acquire 4% of net adds relative to our competitive set. 2020, as you may have heard on the earnings call, we netted 11% of net adds. So we're very comfortable with our continued growth rate, and we feel very comfortable we'll continue to be able to drive the current growth rates discussed at the earnings call.

Thank you. Our next question, as a shareholder of FUBO and also a sports gambler, can you address how the streaming lag will affect live betting? Online wagering technology has figured out a way to update lines in real-time, but with a streaming delay, this could be a very small window to place bets. I do not know that's very early in this, but I was just curious as to the share concern. Thank you, David Gandler, Simone and the rest of the team.