CRAZY After Hours Swings | Netflix Earnings | Summary and Q&A

TL;DR

Netflix beats earnings per share expectations but misses on revenue and net new subscribers, causing the stock to decline by 10.5% after hours.

Key Insights

• 👶 Netflix's Q1 performance was a mixed bag, with earnings per share exceeding expectations but revenue and net new subscriber figures falling short.
• ⌛ The company's stock experienced a significant decline after hours, reflecting investor disappointment in the subscriber miss.
• 🤪 Despite the negative reaction, Netflix maintained its long-term financial outlook and expects to meet its objectives going forward.
• 🤨 The disparity between net income and free cash flow raises concerns about how Netflix amortizes its production costs.
• 😀 Netflix faces increasing competition in the streaming industry, but its dominant market share and potential for future growth are factors to consider.
• 🍉 The stock's volatile nature illustrated by its 52-week high and low highlights the importance of long-term investment valuation rather than short-term earnings fluctuations.
• 🤩 Investors should analyze Netflix's financial performance, including key metrics like return on invested capital and profit margins, to determine its long-term value.

Transcript

all right guys Netflix just reported um so we didn't even see the report yet and we just pulled it up in our software and it was down 10 after hours automatically so we're like oh my God they must have missed big they didn't they on earnings per share they actually beat by a penny 288 a share versus 287 Revenue did Miss slightly 8.16 billion versus... Read More

Questions & Answers

Q: What were Netflix's earnings per share and revenue figures for Q1?

Netflix reported earnings per share of $2.88, beating expectations by one cent. However, the company's revenue came in slightly lower than anticipated at $8.16 billion.

Q: How did Netflix's net new subscriber numbers fare in Q1?

The company added 1.7 million net new subscribers in Q1, falling short of the expected 2.4 million. This disappointing figure contributed to the stock's decline after hours.

Q: Did Netflix revise its financial outlook for the future?

No, Netflix maintained its financial forecast for 2022 and 2023 and expects to meet its objectives despite the Q1 subscriber miss.

Q: Why did Netflix's stock experience a significant decline after the earnings report?

The stock declined by 10.5% after hours due to the lower-than-expected net new subscriber numbers, signaling potential concerns about the company's future growth.

Summary & Key Takeaways

• Netflix exceeded earnings per share estimates by one cent but fell short on revenue, posting $8.16 billion compared to an expected $8.18 billion.

• The company's net new subscriber numbers also disappointed, with 1.7 million additions instead of the expected 2.4 million.

• Despite the negative reaction from investors, Netflix reiterated its financial forecast for 2022 and 2023 and expects to meet its long-term objectives.