Netflix nears 100 million subscribers worldwide
Netflix shares traded down about 0.8% in after-hours trading to $146.02, in a 52-week range of $84.50 to $148.29.
What's happening behind the scenes?In the first quarter of 2017, Netflix added 5 million members to the fold, bringing its tally to 98.75 million.
USA paid subscribers continued to grow at a slower pace than we previously projected, with trailing 12-month paid net adds at 3.7 million in the quarter, down 32% from 5.4 million at the end of first-quarter 2016, which was down 9% versus 2015.
Although Netflix doesn't reveal the number of subscribers by country, Roy Morgan estimates 5.86 million Australians aged 14 and over have access to an SVOD service through 2,268,000 household subscriptions.
"The minute you actually pivot (investors) to an income statement, you're talking to a completely different kind of investor", Martin said. Considering that the final tally of streaming subscribers fell within 0.3% of the official forecast, that miss looked more like a rounding error.
Netflix, a company that has long concentrated on on-demand, commercial-free viewing, is going to continue its efforts in that area, rather than expanding in the direction of live, ad-supported programming.
The reporting structure was tweaked to include guidance figures for total revenue.
However, user growth is a more important metric for a growth company like Netflix. Subscriber numbers will still be provided, but Netflix is growing into a more traditional reporting mold here. Free cash flow in Q1 was at minus Dollars 423 million, higher than the cash flow loss at 261 million the year before, though an improvement from the fourth quarter. Netflix made the speculation Monday with the announcement of its first-quarter profits.
Most of this growth is coming from worldwide markets, with a net addition of 3.5 million in during the period.
Top-line sales should increase by 31%, landing near $2.76 billion. During the same quarter in the prior year, the company posted $0.06 earnings per share.
Discussing the Q2 guidance, analyst David Miller said the company's earnings per share guidance of $0.15 was short of his estimate as well as the consensus estimate of $0.24.
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. The good news is: A drop in implied volatility has given investors and traders better odds of making in NFLX stock than they've had in months. Following the sale, the director now owns 8,012 shares of the company's stock, valued at approximately $1,180,888.68.