Netflix 1Q23 Results (NFLX)


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netflix is expected to release its first-quarter results after the bell on Tuesday, and investors will pay close attention to subscriber numbers, especially for its ad-supported level.

Although Netflix will no longer provide subscriber tips, it will still report the total number of users, in the US and worldwide, each quarter.

Here’s what Wall Street expects, according to analysts polled by Refinitiv:

  • Earnings per share: $2.86 expected
  • Income: $8.18 billion expected

A year ago, Netflix reported its first loss of subscribers in a decade, sending its shares into a downward spiral, along with those of its media peers. The results prompted Netflix and its streaming rivals to focus on profits rather than subscriber numbers.

Results from the country’s new ad-supported tier will be a priority. Last November, Netflix unveiled its cheaper tier with ads, which costs $6.99 per month. The ad-supported tier came shortly after losing subscribers as streaming competition intensified.

Co-CEO Ted Sarandos recently said the company will likely offer multiple ad-supported tiers in the future.

Another target for Wall Street will be Netflix’s crackdown on password sharing. Late last year, the company said it would begin rolling out measures to get people who have borrowed from other accounts to create their own.

The company said more than 100 million households share accounts, or about 43% of its global user base. This has affected its ability to invest in new content, Netflix said. The ad-supported option and crackdown on password sharing aim to increase profits.

In February, Netflix introduced advice on sharing passwords in four countries: New Zealand, Canada, Portugal and Spain. The company said it will require users in those countries to set a “primary location” for their accounts and allow users to create up to two “sub-accounts” for those who don’t live in their home for a fee. additional.

The company has yet to provide password sharing guidance for the United States, although it is expected to do so this year.

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