Netflix share price down 1% despite Q1 results revenue beat

The streaming company's stock falls in US after hours trading after beating earnings estimates.

Netflix logo after Netflix Q1 earnings Source: Bloomberg

Netflix's share price is down in US afterhours trading despite a better-than-expected earnings report. Netflix's Q1 revenue also exceeded Wall Street expectations.

Netflix earnings:key figures

Earnings per share(EPS) $0.76
Revenue $4.52 billion
US paid subscriber additions 1.74 million
International paid subscriber additions 7.86 million

Netflix share price falls as Q1 results beat estimates

Netflix’s Q1 earnings per share of $0.76 far exceeded financial experts’ expectations of $0.57. Netflix’s Q1 revenue of $4.52 billion was slightly above analysts’ predictions of $4.50 billion.

The streaming company also had positive news about its subscriber numbers. The corporation added 1.74 million US subscribers and 7.86 million international customers. Netflix’s total number of subscribers is 148.8 million, close to the company’s earlier prediction.

Netflix’s Q1 revenue had a negative aspect with its large amount of debt. The streaming company reported a net cash flow of -$460 million. The company said that the negative cash flow is because of investment in real estate and original content.

Netflix’s Q1 profits were helped by the popularity of the original programming on the streaming service. The corporation reported that 52 million subscribers watched the Ben Affleck movie ‘Triple Frontier’. The superhero series ‘Umbrella Academy’ also attracted 45 million viewers.

How did Netflix’s Q1 earnings compare to other entertainment companies?

Netflix’s Q1 earnings were positive similar to new streaming competitor Disney. Disney’s Q1 profits also beat financial experts’ predictions.

What’s next for Netflix Q2 earnings?

Netflix’s Q1 earnings were better-than-expected with a record number of subscribers, but the company still offered light guidance for the next quarter. The streaming company predicted earnings per share of $0.55 for Q2, less than the expected $0.99 from financial analysts. The corporation also said it expects to add 5 million subscribers, fewer than the predicted 6.09 million new viewers forecast by Wall Street.

Netflix’s Q1 earnings grow despite upcoming rivals

Netflix’s Q1 profits surpassed expectations in the face of new streaming competition. Disney+ will be the most prominent new streaming service that will launch later this year. Netflix wrote a letter to shareholders saying that there is room for both companies to attract viewers.

‘Both companies are world class consumer brands and we’re excited to compete; the clear beneficiaries will be content creators and consumers who will reap the rewards of many companies vying to provide a great video experience for audiences,’ wrote Netflix.

Netflix’s Q1 earnings weren’t affected by competition from other companies like Hulu and doesn’t fear rivalries from new services.

‘We don’t anticipate that these new entrants will materially affect our growth because the transition from linear to on demand entertainment is so massive and because of the differing nature of our content offerings,’ wrote Netflix in a statement.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

See opportunity on a stock?

Don’t miss your chance. Try a risk-free trade in your demo account, and find out whether your hunch could have paid off.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance. Upgrade to a live account to take advantage.

  • Trade a wide range of popular global stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform, when it matters

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Bid
Offer
-
-
China 300
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.