Seeking Alpha

Netflix offers light EPS guidance, but strong subscriber figures

  • Netflix (NASDAQ:NFLX) expects Q3 EPS of $0.89, below a $1.06 consensus.
  • 570K U.S. streaming subs were added in Q2, above guidance of 520K. 1.12M international subs were added, above guidance of 940K. The U.S. and international bases respectively stood at 36.2M and 13.8M at quarter's end. The DVD base fell by 391K to 6.3M.
  • Netflix expects to add 1.33M U.S. subs in Q3, and 2.36M international subs.
  • Q2 free cash flow was $16M vs. $8M in Q1 and $13M a year ago. Domestic streaming contribution profit rose to $227M from $151M a year ago (margin of 27.1%), and international streaming contribution loss fell to $15M from $66M (margin of -5%).
  • Streaming content obligations total $7.7B, up from $7.1B at the end of Q1 and $6.4B a year ago.
  • ARPU is expected to "rise slowly" thanks to price hikes for new members. Netflix will launch in Germany, France, Austria, Switzerland, Belgium, and Luxembourg in September.
  • NFLX +1.6% AH. Q2 results, shareholder letter (.pdf)
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Comments (4)
  • Deja Vu
    , contributor
    Comments (1352) | Send Message
     
    Antigravity exists. This is indisputable proof.
    21 Jul 2014, 06:52 PM Reply Like
  • DougRk
    , contributor
    Comments (1619) | Send Message
     
    Incredible. I missed Netflix by miles 2 or 3 years ago.
    21 Jul 2014, 07:32 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (4225) | Send Message
     
    "earnings guidance was horrid", according to top analyst Paulo Santos.

     

    Maybe that is why the shares are getting punished today.
    22 Jul 2014, 09:23 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (4225) | Send Message
     
    getting slammed big time. When will the carnage finally abate?
    22 Jul 2014, 09:44 AM Reply Like
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