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'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.
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