Netflix

Investments
1

Here is what to expect for Netflix today

In relation to Spotify it will be interesting to see how users react in light of rising subscription prices and the password sharing crackdown. (Even though sharing crackdown is not a topic for Spotify)

Sub Net Ads and economic outlook are among the topics to look for.

2

I dont see Netflix numbers being that horrible for the stock reaction today. Maybe it disappointed because despite the huge subscriber increase, it still misses on revenue, and guidance is below expectations.

3

I agree. Numbers look alright at first glance. Maybe investors were hoping for even stronger guidance esp. on subscriber gains from the crackdown or more advertising strength. Overall it feels like the market have been waiting for a trigger to sell off and take some profits.

Now that transcripts are out: Is there any interesting commentary in relation to Spotify?

https://www.bloomberg.com/news/articles/2023-07-19/netflix-password-crackdown-delivers-millions-of-new-members

4

Not really. Their call was mostly focused on their particular business, and no many comments about the overall market or economy.

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5
  • For Q4 2023, Netflix added 13.1 million new subscribers (estimate: 9 million), grew revenue by 12.5% y/y to $8.83 billion (estimate: $8.72 billion), grew net income to $938 from $55 million in the previous year and EPS from $0.12 to $2.11 (estimate: $2.22).
  • For Q1 2024, Netflix is guiding an EPS of $4.49, higher than estimate of $4.09 and revenue of $9.24 billion, in line with $9.28 billion estimate.
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6

Why is there such a high Eps growth?

7

No specific reason given but I think it’s due to growth of revenue by around $1 billion.

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