Netflix Q1'23 - Good or Bad?

Used to be a darling stock and one of the FAANG members, how did Netflix do for Q1'23?

It did okay.

Here are some points to take note of their latest earnings.

Revenue increased 3.7% YoY from USD 7.87 billion to USD 8.16 billion.

Operating income and net income, were down, however, by 13% and 18% respectively.

Diluted EPS shrunk in tandem, by 18% as well.

Cost!

The cost of revenue already shows signs of reducing as ongoing expense management and timing of hiring and content spend.

Although higher versus Q1'22, the figures have come down quite a bit if compared on a QoQ basis versus Q4'22.

Notorious for hacking and slashing to generate as much content as possible, Netflix seems to have toned down on that aspect.

Content spend is reduced as mentioned, and that somehow pushes up the operating cash flow.

Operating cash flow for Q1'23 is at USD 2.18 billion, up from USD 922.8 million due to lower additions to content assets albeit a lower net income YoY.

So are Netflix's results good?

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