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Netflix Earnings: Stocks Fall, Earnings Expectations Dim Despite Subscriber Growth

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Netflix shares are down After the streaming giant issued a lackluster earnings forecast in its quarterly earnings report, despite the company growing subscriber numbers for the third straight quarter and publishing quarterly financial results in line with expectations.


  • The statement said that Netflix gained 1.75 million subscribers in the first three months of 2023, reaching 232.5 million paid subscribers worldwide.
  • The number beats analysts’ median estimate of 232 million subscribers, according to FactSet, but is down 77% from the roughly 8 million subscribers gained in the previous quarter.
  • Shares of the streaming service fell 10% in after-hours trading, before returning to a more modest loss of 4%.
  • Netflix’s new forecast for the second quarter, earnings per share of $2.84 (€2.59), is well below stock market estimates of $3.07 (€2.80), while for the first time the company backtracked on providing forecasts to subscribers. Preparation.
  • However, this is the third consecutive quarter of subscriber growth, after consecutive declines in the first two quarters of last year, and the first user losses in over a decade, which led to a huge surge in subscribers.
  • Netflix posted a profit of $1.31 billion (€1.19 billion) in the fourth quarter, narrowly beating analysts’ estimates of $1.3 billion, while its revenue of $8.16 billion (€7.4 billion) disappointed analysts’ expectations who were counting on $8.18 billion.

main context

Netflix has allowed more modifications to its service phare pour faire face aux pertes d’abonnés surprises de l’année dernière, en lançant un niveau d’abonnement moins coûteux financé by la publicité en novembre et en prenant des mesures pour réprimer le partage de comptes in spring. Reed Hastings, the billionaire founder and CEO of the company, left his position in January.

to monitor

The impact of the password-sharing campaign on Netflix revenue and profits. In a recent note, Bank of America analyst Jessica Reeve-Ehrlich estimated that these actions would result in about $1.5 billion in additional annual revenue for the company, calling the password crackdown “a huge long-term opportunity.”

Amazing fact

Netflix has been the third best performing stock in the S&P 500 since May 12, 2022, when it hit a five-year low, according to FactSet data. Shares of the broadcast company are still down more than 50% from their November 2021 peak, with the S&P down 10%.

the shadow

Netflix is ​​in the midst of a public relations fiasco after the live reunion episode of its reality show Love Is Blind, scheduled for Sunday, could not be broadcast due to technical issues. It was the second major live show on Netflix, following last month’s Chris Rock special.

Translated article from the American magazine Forbes – Author: Derek Saul

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