A pair sits in front of a television with the Netflix logo on it.
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THE ANGEL – Netflix will not provide quarterly membership numbers or average revenue per user starting next yr, the corporate said Thursday because it reported earnings that beat each top and bottom lines.
Total members rose 16% to 269.6 million in the primary quarter, well above Wall Street’s expected 264.2 million. However, this quarter is certainly one of the last glimpses investors will get of the corporate’s subscriber base going forward.
“As we have stated in previous letters, we focus on revenue and operating margin as our primary financial metrics – and engagement (i.e. time spent) as our best indicator of customer satisfaction,” the corporate said said in its quarterly letter to shareholders. “In our early days, when we had little revenue and profit, membership growth was a strong indicator of our future potential.”
Netflix said it’s now generating significant profits and free money flow and is exploring latest revenue streams comparable to promoting and a crackdown on password sharing. However, membership numbers are usually not the one think about the corporate’s growth. It said the metric lost meaning after it began offering multiple price points for memberships.
The company said it might still “announce key subscriber milestones as we reach them.”
Netflix also noted that it expects paid net adds to be lower within the second quarter in comparison with the primary quarter “due to typical seasonality.” Its second-quarter revenue forecast of $9.49 billion was slightly below Wall Street’s estimate of $9.54 billion
The company’s shares fell about 4% in prolonged trading.
Here are Netflix’s first quarter results:
- Earnings per share: $5.28 versus LSEG’s expected $4.52
- Revenue: $9.37 billion versus LSEG’s expected $9.28 billion
- Total members: 269.6 million vs. 264.2 million expected, in accordance with Street Account
Netflix reported first-quarter net income of $2.33 billion, or $5.28 per share, compared with $1.30 billion, or $2.88 per share, within the year-ago period.
The company reported revenue of $9.37 billion within the quarter, up from $8.16 billion within the year-ago quarter.
The streaming company is managing its shift from specializing in subscriber growth to specializing in profits by utilizing price hikes, a crackdown on password sharing and an ad-supported tier to spice up revenue. Investors are on the lookout for signs that these efforts are still giving Netflix a lift and are on the lookout for more details concerning the company’s push into the video game space.
Netflix could also provide more insight into its partnership with Investments of the TKO Group to bring WWE to the platform. The company has announced that it desires to expand its live sports offering.
“We are still within the early stages of developing our live programming and I’d see this as an expansion of the varieties of content we provide, the best way we give attention to movies, unscripted text, animation and most recently games “We’ve expanded,” said co-CEO Ted Sarandos during Thursday’s earnings call. “We imagine that most of these event culture moments just like the Jake Paul-Mike Tyson fight are exactly that kind of television, and we would like to assist win these moments over to our members as well, so for me that is it exciting part.” of this.”
As of Thursday morning, the corporate’s shares were up 27% yr up to now and about 85% within the last 12 months.
