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Weekly Wins: How to read an earnings report?

Weekly Wins: How to read an earnings report?
The earnings season is picking up speed while $Netflix (NFLX.US)$ , the video streaming giant, is set to report its fourth-quarter earnings after the market close on Thursday.
As one of FAANG companies, Netflix will be a blockbuster of this week. Netflix has been on a downward trajectory since November, down nearly 25% from its all-time high.
Weekly Wins: How to read an earnings report?
Spurred by a surge in demand to watch videos at home during the pandemic, Netflix is the market darling of 2020, gaining 67% and $S&P 500 Index (.SPX.US)$ up 16.26% over the same period.
How is Netflix doing in the post-pandemic era?
Does NFLX have a bigger business picture plan, like the progress of its video game ambitions?
What else can we expect from the earnings call?
Is Netflix still a good investment option?
Investors can find some information from the earnings results and the conference call.
How to be well-equipped to dissect Netflix's fresh financial results?

Here are key things to focus on this coming earnings report: revenue, EPS, subscriber growth, financial position.
They will be reported in three financial statements: Balance Sheet/ Income Statement/ Cash Flow Statement.

Why it matters?
The first thing to do when analyzing a company's earnings report is to examine revenue, earnings per share (EPS)/net income.
Have they grown or decreased from the same period a year ago? Did they meet the expectations of analysts and company guidance? $Netflix (NFLX.US)$'s Q32021 revenue rose 16.3% year over year (YOY), its slowest pace in at least the past 15 quarters.
For platform companies, user base is a core valuation metric, especially for Netflix, whose revenue is largely dependent on subscription revenue.
As a content-driven company, the endless cash burn is a common cliché when criticizing NFLX's growth model. Could $Netflix (NFLX.US)$ prove it to be a sustaninable cash-generating company with postive cash flows?

[ Weekly Wins]
Weekly Wins: How to read an earnings report?
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Weekly Wins: How to read an earnings report?
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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