Revenue for the final quarter of 2023 was reported at $8.83 billion, beating Wall Street estimates of $8.71 billion. This was largely spurred by price hikes along with initiatives such as ad-supported tiers and a crackdown on password sharing. The ad tier has surpassed 23 million active users, Netflix confirmed.

Earnings per share narrowly missed estimates, coming in at $2.11 compared to a predicted $2.20. This is still a significant rise from the $0.12 EPS recorded during the same quarter the previous year. Free cash flow for Q4 of 2023 was $1.58 billion, while full-year free cash flow was $6.9 billion.

The post Netflix Stock Surges Amid Subscriber Boom appeared first on theprimarymarket.com.

Netflix added 8.76 million customers in the third quarter, growing its subscriber base to 247.2 million and far exceeding analysts’ forecasts. The company is now on track to add over 20 million customers this year; a large increase from the nine million added in 2022. Revenue for the quarter rose 7.8% to $8.54 billion, while earnings were $3.73 per share.

Following its strong financial performance, Netflix has decided to raise prices in some key markets. This includes raising the price of its most expensive plan in the US by $3 to $23 and the basic plan by $2 to $12. Similar steps in the UK and France are set to follow.

The post Netflix to Raise Prices Following Strong Q3 Results appeared first on theprimarymarket.com.

After speaking on numerous facets of the business, Neumann explained that he expects operating margins to be in the range of 18% to 20%; down from a peak of 21%. Current consensus estimates are slightly below 20%.

The CFO added that while new revenue initiatives such as the ad-supported tier have been introduced, such offerings could take time to mature. “We’re still in the crawl of the crawl-walk-run stage, so it is not easy to build an ad business from scratch. We got a lot of work to do,” Neumann explained.

The post Netflix Stock Falls as CFO Warns of Lower Margins appeared first on theprimarymarket.com.

According to Netflix Co-CEO Ted Sarandos, the streaming giant’s new growth phase will include expanding the platform’s international content. Sarandos announced earlier in the week that Netflix would invest $2.5 billion in its Korean content over the next four years.

The company is also looking to expand its foothold in sports. While Sarandos has reiterated that the company is not yet looking into streaming live sports, the company is continuing its foray into docuseries and other sports content such as “Formula 1: Drive to Survive,” “Full Swing,” and “Break Point”.

In addition to expanding its content offerings, limiting losses has also been a priority for Netflix. While the company’s ad-supported tier provides a new avenue of profitability for the company, Netflix is also looking to cut costs, with the company announcing a flat year-over-year spend of $17 billion.

The post Netflix Announces New Phase Of Growth appeared first on theprimarymarket.com.

Netflix reported revenue of $8.16 billion, coming just short of the expected $8.18 billion. The EPS in the first quarter was $2.88 versus the $2.86 expected, while the streamer added 1.75 million new subscribers compared to an estimated 2.3 million. The company also predicts EPS of $2.84 on $8.24 billion revenue for the second quarter, which is well below earnings of $3.05 per share on $8.5 billion revenue forecasted by analysts.

After the earnings report came out, Netflix shares dropped from Tuesday’s close of $333.70 per share to $306.50 at one point in after-hours trading. The stock later bounced back to $333.25 per share.

Netflix also shared an update about the future of its DVD rental business on Tuesday. The company will end the service after 25 years, with the final batch of discs set to be shipped at the end of September. The DVD rentals accounted for just $145.69 million in revenue last year as more customers shifted to enjoying their movies and television shows through streaming.  

The post Netflix Reports Mixed Q1 Results, Misses Out on Subscriber Estimates appeared first on theprimarymarket.com.

Revenue for the final quarter of 2023 was reported at $8.83 billion, beating Wall Street estimates of $8.71 billion. This was largely spurred by price hikes along with initiatives such as ad-supported tiers and a crackdown on password sharing. The ad tier has surpassed 23 million active users, Netflix confirmed.

Earnings per share narrowly missed estimates, coming in at $2.11 compared to a predicted $2.20. This is still a significant rise from the $0.12 EPS recorded during the same quarter the previous year. Free cash flow for Q4 of 2023 was $1.58 billion, while full-year free cash flow was $6.9 billion.

The post Netflix Stock Surges Amid Subscriber Boom appeared first on theprimarymarket.com.

Netflix added 8.76 million customers in the third quarter, growing its subscriber base to 247.2 million and far exceeding analysts’ forecasts. The company is now on track to add over 20 million customers this year; a large increase from the nine million added in 2022. Revenue for the quarter rose 7.8% to $8.54 billion, while earnings were $3.73 per share.

Following its strong financial performance, Netflix has decided to raise prices in some key markets. This includes raising the price of its most expensive plan in the US by $3 to $23 and the basic plan by $2 to $12. Similar steps in the UK and France are set to follow.

The post Netflix to Raise Prices Following Strong Q3 Results appeared first on theprimarymarket.com.

After speaking on numerous facets of the business, Neumann explained that he expects operating margins to be in the range of 18% to 20%; down from a peak of 21%. Current consensus estimates are slightly below 20%.

The CFO added that while new revenue initiatives such as the ad-supported tier have been introduced, such offerings could take time to mature. “We’re still in the crawl of the crawl-walk-run stage, so it is not easy to build an ad business from scratch. We got a lot of work to do,” Neumann explained.

The post Netflix Stock Falls as CFO Warns of Lower Margins appeared first on theprimarymarket.com.

According to Netflix Co-CEO Ted Sarandos, the streaming giant’s new growth phase will include expanding the platform’s international content. Sarandos announced earlier in the week that Netflix would invest $2.5 billion in its Korean content over the next four years.

The company is also looking to expand its foothold in sports. While Sarandos has reiterated that the company is not yet looking into streaming live sports, the company is continuing its foray into docuseries and other sports content such as “Formula 1: Drive to Survive,” “Full Swing,” and “Break Point”.

In addition to expanding its content offerings, limiting losses has also been a priority for Netflix. While the company’s ad-supported tier provides a new avenue of profitability for the company, Netflix is also looking to cut costs, with the company announcing a flat year-over-year spend of $17 billion.

The post Netflix Announces New Phase Of Growth appeared first on theprimarymarket.com.

Netflix reported revenue of $8.16 billion, coming just short of the expected $8.18 billion. The EPS in the first quarter was $2.88 versus the $2.86 expected, while the streamer added 1.75 million new subscribers compared to an estimated 2.3 million. The company also predicts EPS of $2.84 on $8.24 billion revenue for the second quarter, which is well below earnings of $3.05 per share on $8.5 billion revenue forecasted by analysts.

After the earnings report came out, Netflix shares dropped from Tuesday’s close of $333.70 per share to $306.50 at one point in after-hours trading. The stock later bounced back to $333.25 per share.

Netflix also shared an update about the future of its DVD rental business on Tuesday. The company will end the service after 25 years, with the final batch of discs set to be shipped at the end of September. The DVD rentals accounted for just $145.69 million in revenue last year as more customers shifted to enjoying their movies and television shows through streaming.  

The post Netflix Reports Mixed Q1 Results, Misses Out on Subscriber Estimates appeared first on theprimarymarket.com.