Investing.com – Netflix (NASDAQ:) beats expectations and is full of profits in the first quarter of 2024. The streaming platform reached 2.332 billion in profits in the first three months of the year, almost 80% more than the same period of 2023. At the same time, revenues rose by 15% to 9.370 billion from 8.162 billion in the first quarter of last year.
Data beyond expectations
Earnings per share amounted to $5.28, beating expectations of $4.52 per share. Operating profit also grew, reaching $2.6 billion, +54% compared to $1.7 billion in the first quarter of 2023. The operating margin stood at 28%, seven percentage points higher compared to the previous year.
The data exceeded the entertainment giant’s forecasts thanks to the influx of new subscribers: 9.3 million against 1.8 million in the same period of 2023. Overall, subscriptions reached 269.6 million, an increase of 16 % year on year and above 264.2 million expectations.
However, the company said this will be the last subscriber data made available to investors. In fact, in the next quarterly reports, Netflix will focus on revenues, operating margin and engagement as the main financial indicators.
“In the early days – explains the company in the note -, when revenues and profits were low, subscriber growth was a strong indicator of our future potential. But now we are generating very substantial profits and free cash flow,” which is why, according to Netflix, information on new subscribers is now superfluous.
Netflix falls in the pre-market
The change of line in the communication, however, was not well received by the markets and in pre-market trading the stock fell by more than 6%. Analysts fear that in the long run the crackdown on sharing passwords between users will end its positive effects on the growth of new subscribers.
As for the future, in the second quarter of 2024, Netflix expects revenue growth of 16%, but at the same time the company estimates that inflows of new subscribers will be lower than in the first quarter due to seasonality.
Finally, for the entire year 2024, the company imagines a growth in revenues of 13-15% to 9.49 billion, below the expectations of analysts who expected 9.54 billion, and an operating margin of 25%, in increase compared to the previous forecast of 24%.
DISCOUNT CODE
Take advantage of a special discount for subscribing to InvestingPro+ and take advantage of all our tools to optimize your investment strategy. (The link calculates and directly applies the discount of an additional 10%. If the page does not load, enter the code proit2024 to activate the offer).
You will have at your disposal a series of exclusive tools which will allow you to better address the market:
- ProPicks: Equity portfolios managed by a fusion of artificial intelligence and human skills, with proven performance.
- ProTips: digestible information to simplify masses of complex financial data into a few words
- Fair Value and Health Score: 2 synthetic indicators based on financial data that provide an immediate view of the potential and risk of each security.
- Advanced Stock Screener: Search for the best stocks based on your expectations, taking into account hundreds of financial metrics and indicators.
- Historical financial data for thousands of stocks: So that fundamental analysis professionals can dig into all the details themselves.
- And many other servicesnot to mention the ones we plan to add soon!
Take advantage HERE AND NOW of the opportunity to get the Investing Pro+ annual plan with a special discount. Use code proit2024 and get over 40% off your 1-year subscription.
Pro Information
Here are our recommendations on Italian stocks undervalued in April 2024.
Watch a video that explains it how to use InvestingPro Fair Value to adapt your portfolio to the next market movements.
You can register for free for the next webinar on April 23 “Trend reversals: how to recognize them in Trading” at THIS LINK.
Tags: Netflix beats expectations fills subscribers stock falls premarket Investing .com
