- Netflix second quarter results:
- Streaming paid net change: +8.05 million (+37% y/y), beating the estimate of +4.87 million.
- UCAN region: +1.45 million (+24% y/y), beating the estimate of +1.19 million.
- EMEA region: +2.24 million (-7.8% y/y), beating the estimate of +1.56 million.
- LATAM region: +1.53 million (+25% y/y), beating the estimate of +955,125.
- APAC region: +2.83 million, beating the estimate of +1.25 million.
- Financial highlights:
- Revenue: $9.56 billion (+17% y/y), beating the estimate of $9.53 billion.
- Streaming paid memberships: 277.65 million (+16% y/y), beating the estimate of 273.78 million.
- EPS: $4.88 vs. $3.29 y/y, beating the estimate of $4.74.
- Operating margin: 27.2% vs. 22.3% y/y, beating the estimate of 26.5%.
- Operating income: $2.60 billion (+42% y/y), beating the estimate of $2.54 billion.
- Free cash flow: $1.21 billion (-9.4% y/y), missing the estimate of $1.61 billion.
- Third quarter forecast:
- Revenue: $9.73 billion, below the estimate of $9.83 billion.
- EPS: $5.10, above the estimate of $4.74.
- Operating margin: 28.1%, above the estimate of 25.7%.
- Year forecast:
- Sees operating margin: 26%, previously 25%, matching the estimate of 25%.
- Free cash flow: about $6 billion, below the estimate of $6.59 billion.
- Other key points:
- Year reported revenue growth now expected at 14%-15%, previously 13%-15%.
- 3Q net adds expected to be lower vs. last year’s first full quarter impact from paid sharing.
- Ad revenue growing nicely but not expected to be a primary growth driver in 2024 or 2025.
- Plans to refinance $1.8 billion of maturing debt in the next 12 months.
Netflix Inc on Smartkarma
Analysts on Smartkarma have been actively covering Netflix Inc, providing valuable insights for investors. Analyse Asia with Bernard Leong‘s report, “How Netflix bring Asian Content to the Global Audience with Minyoung Kim,” showcases VP of Content Asia Pacific at Netflix, Min Yong Kim, discussing the importance of understanding audiences and building relationships in the digital media landscape. This bullish sentiment emphasizes the shift towards content creation on digital platforms.
Additionally, Baptista Research delves into Netflix Inc‘s future prospects in reports such as “Netflix Inc.: A Shift In Reporting Focus from Subscriptions to Revenue and Engagement” and “Netflix Inc: Will Its Foray Into Live Entertainment Result In Phenomenal Subscriber Growth?” These reports analyze key developments from Netflix’s earnings calls, strategic shifts in reporting focus, and forays into live entertainment, providing investors with a comprehensive view of the company’s performance and potential drivers of growth.
A look at Netflix Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Smartkarma Smart Scores provide insight into the overall outlook for Netflix Inc. The company’s high scores in Growth and Momentum indicate strong potential for long-term expansion and market performance. With a focus on constantly evolving its content offerings and technological capabilities, Netflix is positioned to continue its growth trajectory in the competitive streaming industry.
Although Netflix scores lower in Value and Dividend factors, its Resilience score suggests a level of stability during market fluctuations. This, coupled with its robust Growth and Momentum scores, paints a positive picture for Netflix’s long-term outlook as it continues to innovate and adapt to changing consumer preferences in the entertainment sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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