Netflix Earnings: Investors cheer amid strong subscriber growth

Netflix Earnings: Overview

Netflix blew past analysts’ subscriber growth expectations for the quarter ended December 2022, pushing its share price nearly 7% higher after the market closed on Thursday. To know more on Netflix stock, click here.

Netflix as a streaming service was facing issues when it came to its subscriber base since the beginning of 2022. The company saw its subscriber base fall for the first time ever for the quarter ended March and the quarter ended June this year. 

Netflix has two revenue streams - its streaming business accounts for 99% of revenues, while its DVD business accounts for a meager 1%. 

Subscriber growth is a very important metric for Netflix’s earnings as it forms the revenue base of the streaming business.

Netflix Results: Geographic Revenue Breakdown

Netflix Earnings: Highlights

• EPS: 12 cents against expectations of 45 cents per share, according to Refinitiv.
• Revenue: $7.85 billion, a 1.9% increase
• Global paid net subscribers: 7.66 million added, compared to 4.57 million subscribers expected, according to Refinitiv estimates.
•  Co-founder Reed Hastings stepped down as chief executive of the company and  handed the reins to longtime business partner.

Netflix Earnings: Share Price Performance

Netflix Earnings: Subscriber Growth 

Netflix Earnings:  Subscriber Growth (Geographic)

Netflix Earnings: Average Revenue Per User (ARPU)

Netflix Earnings: Analyst Recommendation

• Renowned brokerage Jefferies raised its share price target to $400 from $385.
• Brokerage Piper Sandler raised its share price target to $325 from $270. 
• Investment bank UBS raised its share price target to $350 from $250.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.