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Mar 31, 2023
Netflix Q1 2023 Earnings Report
Netflix's Q1 2023 results were in line with expectations, marked by revenue growth, strong content performance, and progress in strategic initiatives.
Key Takeaways
Netflix's Q1 2023 saw revenue and operating profit align with forecasts. The company delivered a strong content slate and achieved investment grade status. Paid sharing was launched in four countries with promising results, and the ads experience is being upgraded to attract more consumers.
Q1 revenue and operating profit were in line with forecast.
Content slate in Q1 was strong.
Achieved investment grade status with Moody’s recent upgrade.
Launched paid sharing in four countries with pleasing results and planning a broad rollout in Q2.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q2 2023, Netflix forecasts revenue of $8.2 billion, a 3% year-over-year increase (6% on an F/X neutral basis), and operating income of $1.6 billion. They anticipate constant currency revenue growth to accelerate in the second half of 2023.
Positive Outlook
- Revenue of $8.2B, up 3% year over year, or 6% growth on an F/X neutral basis.
- Paid sharing launches are showing positive results.
- Opportunities to improve member experience were identified and are being implemented.
- Constant currency revenue growth is expected to accelerate over the second half of 2023.
- Targeting a 2023 operating margin of 18%-20%.
Challenges Ahead
- Rollout of major new initiatives (paid sharing and ads) leads to less-than-normal visibility.
- Some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2.
- Operating margin of 19% vs. 20% in Q2 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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