[Financial Summary] Netflix sees significant increase in memberships and revenue, but disappointed with outlook.
*Sanki Chart will be updated later.
Major American video streaming service $Netflix (NFLX.US)$announced its financial results for the period from January to March 2024 on the 18th.Revenue increased by 15% to $9.37 billion.NTT's financial estimates for the fiscal year ending March 2024 (as of the first quarter financial results) are a revenue decrease of 0.6% compared to the previous year, amounting to 13 trillion 60 billion yen. The operating profit is an increase of 6.6%, amounting to 1 trillion 950 billion yen, and the net profit is an increase of 3.5%, amounting to 1 trillion 255 billion yen. EPS is 14 yen 80 sen. Market estimates for the second quarter (July-September) as of October 30 show a revenue of 3 trillion 228 billion yen.Profit increased by 79% to $2.32 billion.Both revenue and profitSurpassing market expectations.Effects of prohibiting account sharing and signing contracts for ad-supported inexpensive plans increasing by 65%, resulting in a membership increase of 9.3 million people in the last three months, which is nearly double the market estimate. The company has achieved consecutive revenue and profit growth for four quarters and has set a new record for the highest quarterly earnings.
Despite strong financial results, the stock price fell in after-hours trading.9.3 million people in the last three months.Nearly double the market estimate.Setting a new record for the highest quarterly earnings.There is a new cycle approaching where central banks around the world are cutting interest rates and starting monetary easing.
Major American video streaming service $Netflix (NFLX.US)$announced its financial results for the period from January to March 2024 on the 18th.Revenue increased by 15% to $9.37 billion.NTT's financial estimates for the fiscal year ending March 2024 (as of the first quarter financial results) are a revenue decrease of 0.6% compared to the previous year, amounting to 13 trillion 60 billion yen. The operating profit is an increase of 6.6%, amounting to 1 trillion 950 billion yen, and the net profit is an increase of 3.5%, amounting to 1 trillion 255 billion yen. EPS is 14 yen 80 sen. Market estimates for the second quarter (July-September) as of October 30 show a revenue of 3 trillion 228 billion yen.Profit increased by 79% to $2.32 billion.Both revenue and profitSurpassing market expectations.Effects of prohibiting account sharing and signing contracts for ad-supported inexpensive plans increasing by 65%, resulting in a membership increase of 9.3 million people in the last three months, which is nearly double the market estimate. The company has achieved consecutive revenue and profit growth for four quarters and has set a new record for the highest quarterly earnings.
Despite strong financial results, the stock price fell in after-hours trading.9.3 million people in the last three months.Nearly double the market estimate.Setting a new record for the highest quarterly earnings.There is a new cycle approaching where central banks around the world are cutting interest rates and starting monetary easing.
![[Financial Summary] Netflix sees significant increase in memberships and revenue, but disappointed with outlook.](https://sgsnsimg.moomoo.com/sns_client_feed/181250687/20240419/0159acd0ae8c4c9e8cb23f0e9ea10f4e.png/big?area=105&is_public=true)
Despite strong financial results, the stock price fell in after-hours trading.Temporary 7.4% decline.There is a new cycle approaching where central banks around the world are cutting interest rates and starting monetary easing.
The company, in an investor letter on the 18th, indicated that the net increase in memberships for the April-June 2024 quarter is expected to slow down due to seasonal reasons compared to the January-March quarter.The outlook is a slow down.Revenue for the second quarter is expected to be 9.49 billion dollars, falling short of the analyst estimate of 9.537 billion dollars.
In addition, NetflixStarting from the first quarter of 2025, Netflix will stop disclosing quarterly new membership numbers and will only announce them when certain milestones are reached.These indicators have long been the primary means for evaluating Netflix's performance in the U.S. financial markets, but the company is aiming to shift its focus to traditional indicators such as revenue and profit.
In addition, NetflixStarting from the first quarter of 2025, Netflix will stop disclosing quarterly new membership numbers and will only announce them when certain milestones are reached.These indicators have long been the primary means for evaluating Netflix's performance in the U.S. financial markets, but the company is aiming to shift its focus to traditional indicators such as revenue and profit.
Ms. Magalie Großheim, Senior Stock Research Analyst at M Science, pointed out that "the monetization of shared accounts may bring benefits for a few more quarters, but it is unknown what will drive membership growth afterwards", and speculated that this is why the company decided to stop disclosing its numbers.
Source: moomoo, Nikkei, Bloomberg, Reuters, Netflix IR.
This article utilizes automatic translation for certain parts.
- Moomoo News Evelyn
![[Financial Summary] Netflix sees significant increase in memberships and revenue, but disappointed with outlook.](https://sgsnsimg.moomoo.com/sns_client_feed/181250687/20240419/0d35b8635ba445a38b0e3be5737467c9.png/big?area=105&is_public=true)
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