The corporate reporting period has is starting.
Last week, 44 companies from the S&P 500 index reported.
Today, let’s take a look at Netflix. Its revenue is $9.5B. It grew by +3.8% compared to the corresponding value for the previous quarter and confirmed analysts’ expectations. Let’s analyze the company’s business in more detail.
Netflix is one of the largest streaming companies in the world with a subscriber base of over 278 million users from 190 countries. The company creates most of its content independently. The company also introduces paid subscriptions to video games and advertising integrations.
Netflix’s revenues increased by +17.2% year-on-year. During the reporting quarter, the company promoted a new subscription option with advertising support – the number of such users grew by +34%. The company is fighting the problem of password sharing by offering “alternative” subscriptions. The company also published the number of paid subscribers, namely 278 million users, which is +11.2% more than in 2023.
54% of the revenue structure is occupied by manufacturing costs, and 46% by gross revenue. Over the past quarter, the company earned a profit of $2.1B. Its market capitalization is $277B.
After the publication of the report, Netflix shares fell by -1.6% to $633 per share. In general, market participants are dissatisfied with the company’s current financial results and reacted negatively to forecasts for the next quarter.
*surprise – % ratio between actual and expected revenue
**growth – % ratio of the amount of revenue for the last 4 quarters compared to this value calculated for the previous quarter
