Netflix +5.3% AH; company raising prices for new subs

|By:, SA News Editor

Netflix (NFLX) expects Q2 EPS of $1.12, above a $1 consensus. The company plans to raise prices by $1-$2/month (depending on the country) later in Q2 for new members. Existing members will maintain their current prices "for a generous time period."

2.25M U.S. streaming subs were added in Q1, in-line with guidance. 1.75M international subs were added, beating a forecast of 1.6M. 200K DVD subs were lost, lowering the total base to 6.7M.

Netflix ended Q1 with 35.67M U.S. streaming subs, and 12.68M international subs. It expects to add 520K and 940K U.S. and international subs in Q2, respectively.

The company declares its international ops are "on a path to achieve profitability this year."

Q1 free cash flow was $8M vs. $5M in Q4 and -$42M a year ago. Streaming content obligations are at $7.1B vs. $7.3B at the end of Q4 and $5.7B a year ago.

Q1 results, shareholder letter