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 the statement posted on the company’s website, the change will affect “new and rejoining members.”

“If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account,” the company added.

The move is likely part of Netflix’s push to promote its ad-supported plan. At a cost of $6.99 per month, the “Standard with ads” plan is now the most affordable option for new users. The Standard plan, which offers ad-free streaming, costs $15.49 and gives users an option to add an extra member to the plan for $7.99 each.

Elimination of the “Basic” plan comes ahead of Netflix’s quarterly earnings results release. The streaming service gained the trust of investors in recent months thanks to the ad-supported plan and its initiative to crack down on the practice of password sharing. As a result, Netflix shares have recovered after challenging the second part of 2022 and are now up almost 62% year to date.

The post Netflix Removes its Lowest-Priced Ad-Free Plan in the U.S. appeared first on theprimarymarket.com.

Mayer explained that while the decision to acquire Netflix or rival streaming platform Hulu were investment opportunities for the company in 2013, she opted to rather purchase the social blogging platform Tumblr for $1.1 billion. Netflix and Hulu were valued at approximately $4 billion and $1.1 billion respectively, Mayer recalled.

“We looked at a transformative acquisition, and we bought Tumblr,” Mayer explained in the interview with Tech Brew. While a cheaper option at the time, the former Yahoo CEO came to regret the purchase, with Tumblr losing over $700 million of its value. Netflix, in contrast, grew to a value of $140 billion while Disney became the majority owner of Hulu in 2019.

The post Ex-Yahoo CEO Marissa Mayer Regrets Passing Up Netflix 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.

The streaming giant announced on Thursday that it has reached an agreement with General Motors to feature vehicles such as the Chevrolet Bolt, the electric GMC Hummer pickup, and the Cadillac Lyriq in multiple TV shows and movies so long as there is a “relevant” opportunity to do so. The financial terms of the deal remain undisclosed.

General Motors and Netflix have agreed to introduce their new partnership by launching a commercial featuring Will Ferrell that is scheduled to air during the Super Bowl on February 12. Viewed by the two companies as a “part of a commitment to a more sustainable future,” Netflix affirms that the commercial will help creators “better understand how EVs can complement and enhance their stories.”

Among the shows that will feature GM vehicles are “Love is Blind,” “Queer Eye” and “Unstable.” Netflix added that it is open to exploring opportunities to feature other electric vehicles in TV series and films in the future.

The post Netflix to Feature Electric GM Vehicles in Programming appeared first on theprimarymarket.com.

Netflix’s rise came after the release of its fourth-quarter financial results. While the streaming platform’s revenue was $7.85 billion—falling short of $7.86 billion—its addition of 7.66 million subscribers far outpaced Wall Street estimates of 4.5 million.

High-end retailer Nordstrom experienced a decline in share price after the company decided to lower its full-year profit outlook from $2.30-$2.60 per share to $1.50-$1.70. This decision came after the company’s sales during the nine weeks ending December 31st fell by 3.5%.

“The holiday season was highly promotional, and sales were softer than pre-pandemic levels,” CEO Erik Nordstrom commented following the disappointing results. In addition, the company announced that chief merchandise officer Teri Bariquit has decided to retire, thereby sparking the search for a replacement.

Bed Bath and Beyond finds itself in the hot seat after receiving a letter from the Nasdaq Stock Market stating that the retailer is not in compliance with its listing requirements due to its failure to file its quarterly results with the Securities and Exchange Commission for the period ending November 26, 2022.

The company responded by saying that it is working hard to finalize its quarterly report in an effort to regain compliance. The stock market confirmed that the notice has “no immediate effect”.

The post Netflix Up, Nordstrom Down During After-Hours Trading appeared first on theprimarymarket.com.

Hastings’ decision comes after the company’s fourth-quarter financial results were released on Thursday. While the addition of 7.66 million new subscribers far exceeded forecasts of 4.5 million, adjusted earnings of $0.12 versus missed expectations of $0.58 per share.

The platform’s growth is believed to be driven by the introduction of a new, ad-supported tier as well as the release of a range of high profile content, including Glass Onion, All Quiet on the Western Front, and Wednesday. 

The post Netflix CEO Steps Down Following Q4 Earnings Report appeared first on theprimarymarket.com.

While subscriber numbers declined during the first three quarters of 2022, investors expect them to have risen over Q4. The company’s crackdown on password sharing is also at center stage.

Estimates for Netflix’s fourth-quarter financial results include revenue of $7.85 billion, adjusted earnings per share of $0.58, and an addition of 4.5 million net subscribers. Several analysts polled by Bloomberg expect Netflix to beat revenue expectations following the release of highly popular content such as Glass Onion, Troll, and Wednesday.

Given its release in November, investors are not likely to see the full impact of Netflix’s ad tier. According to data from third-party research firm YipitData, Ad-based gross subscriber additions consist of 15% of total subscriber gross additions.

Wells Fargo’s Steve Cahall expressed the bank’s belief that password sharing will be a major focal point to consider when assessing the streaming platform’s performance going forward. “While much of the sellside and buyside focus of late has been the [advertising video-on-demand] launch, we actually think disclosure will be limited as will the impact on estimates. Instead, we think password sharing is the bigger catalyst near term,” he explained

The post Investors Anticipate Subscriber Gains Ahead of Netflix Q4 Earnings 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 the statement posted on the company’s website, the change will affect “new and rejoining members.”

“If you are currently on the Basic plan, you can remain on this plan until you change plans or cancel your account,” the company added.

The move is likely part of Netflix’s push to promote its ad-supported plan. At a cost of $6.99 per month, the “Standard with ads” plan is now the most affordable option for new users. The Standard plan, which offers ad-free streaming, costs $15.49 and gives users an option to add an extra member to the plan for $7.99 each.

Elimination of the “Basic” plan comes ahead of Netflix’s quarterly earnings results release. The streaming service gained the trust of investors in recent months thanks to the ad-supported plan and its initiative to crack down on the practice of password sharing. As a result, Netflix shares have recovered after challenging the second part of 2022 and are now up almost 62% year to date.

The post Netflix Removes its Lowest-Priced Ad-Free Plan in the U.S. appeared first on theprimarymarket.com.

Mayer explained that while the decision to acquire Netflix or rival streaming platform Hulu were investment opportunities for the company in 2013, she opted to rather purchase the social blogging platform Tumblr for $1.1 billion. Netflix and Hulu were valued at approximately $4 billion and $1.1 billion respectively, Mayer recalled.

“We looked at a transformative acquisition, and we bought Tumblr,” Mayer explained in the interview with Tech Brew. While a cheaper option at the time, the former Yahoo CEO came to regret the purchase, with Tumblr losing over $700 million of its value. Netflix, in contrast, grew to a value of $140 billion while Disney became the majority owner of Hulu in 2019.

The post Ex-Yahoo CEO Marissa Mayer Regrets Passing Up Netflix 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.

The streaming giant announced on Thursday that it has reached an agreement with General Motors to feature vehicles such as the Chevrolet Bolt, the electric GMC Hummer pickup, and the Cadillac Lyriq in multiple TV shows and movies so long as there is a “relevant” opportunity to do so. The financial terms of the deal remain undisclosed.

General Motors and Netflix have agreed to introduce their new partnership by launching a commercial featuring Will Ferrell that is scheduled to air during the Super Bowl on February 12. Viewed by the two companies as a “part of a commitment to a more sustainable future,” Netflix affirms that the commercial will help creators “better understand how EVs can complement and enhance their stories.”

Among the shows that will feature GM vehicles are “Love is Blind,” “Queer Eye” and “Unstable.” Netflix added that it is open to exploring opportunities to feature other electric vehicles in TV series and films in the future.

The post Netflix to Feature Electric GM Vehicles in Programming appeared first on theprimarymarket.com.

Netflix’s rise came after the release of its fourth-quarter financial results. While the streaming platform’s revenue was $7.85 billion—falling short of $7.86 billion—its addition of 7.66 million subscribers far outpaced Wall Street estimates of 4.5 million.

High-end retailer Nordstrom experienced a decline in share price after the company decided to lower its full-year profit outlook from $2.30-$2.60 per share to $1.50-$1.70. This decision came after the company’s sales during the nine weeks ending December 31st fell by 3.5%.

“The holiday season was highly promotional, and sales were softer than pre-pandemic levels,” CEO Erik Nordstrom commented following the disappointing results. In addition, the company announced that chief merchandise officer Teri Bariquit has decided to retire, thereby sparking the search for a replacement.

Bed Bath and Beyond finds itself in the hot seat after receiving a letter from the Nasdaq Stock Market stating that the retailer is not in compliance with its listing requirements due to its failure to file its quarterly results with the Securities and Exchange Commission for the period ending November 26, 2022.

The company responded by saying that it is working hard to finalize its quarterly report in an effort to regain compliance. The stock market confirmed that the notice has “no immediate effect”.

The post Netflix Up, Nordstrom Down During After-Hours Trading appeared first on theprimarymarket.com.

Hastings’ decision comes after the company’s fourth-quarter financial results were released on Thursday. While the addition of 7.66 million new subscribers far exceeded forecasts of 4.5 million, adjusted earnings of $0.12 versus missed expectations of $0.58 per share.

The platform’s growth is believed to be driven by the introduction of a new, ad-supported tier as well as the release of a range of high profile content, including Glass Onion, All Quiet on the Western Front, and Wednesday. 

The post Netflix CEO Steps Down Following Q4 Earnings Report appeared first on theprimarymarket.com.

While subscriber numbers declined during the first three quarters of 2022, investors expect them to have risen over Q4. The company’s crackdown on password sharing is also at center stage.

Estimates for Netflix’s fourth-quarter financial results include revenue of $7.85 billion, adjusted earnings per share of $0.58, and an addition of 4.5 million net subscribers. Several analysts polled by Bloomberg expect Netflix to beat revenue expectations following the release of highly popular content such as Glass Onion, Troll, and Wednesday.

Given its release in November, investors are not likely to see the full impact of Netflix’s ad tier. According to data from third-party research firm YipitData, Ad-based gross subscriber additions consist of 15% of total subscriber gross additions.

Wells Fargo’s Steve Cahall expressed the bank’s belief that password sharing will be a major focal point to consider when assessing the streaming platform’s performance going forward. “While much of the sellside and buyside focus of late has been the [advertising video-on-demand] launch, we actually think disclosure will be limited as will the impact on estimates. Instead, we think password sharing is the bigger catalyst near term,” he explained

The post Investors Anticipate Subscriber Gains Ahead of Netflix Q4 Earnings appeared first on theprimarymarket.com.