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Netflix, Inc. (NFLX)

  • Thu, Apr. 16, 7:29 AM
    | Thu, Apr. 16, 7:29 AM | 12 Comments
  • Wed, Apr. 15, 7:16 PM
    • On a Q1 earnings interview, Netflix (NASDAQ:NFLX) execs pointed to international growth to justify the market's (priced-in) expectations of 60M-90M subscribers.
    • "For most global Internet firms, the U.S. is 20%-35% of usage and revenue; we're not anywhere close to that yet but we're continuing to invest in international," CEO Reed Hastings said. U.S. membership of 41.4M makes up two-thirds of Netflix's current total subscribers.
    • On margin outperformance (U.S. contribution margin was 31.7% vs. a forecast 30.1%) : Aside from shifting marketing dollars to international, part of it is how Netflix allocates content costs by geography. "By going faster internationally ... it's gonna provide some relief to those global originals and global projects we do have that are allocated to the U.S.," CFO David Wells says. "Our target remains the same: 40% in 2020."
    • On leverage of original content: "What we're seeing is that dollars invested in our original programming are more efficient in that for every dollar spent, we get more bang for the buck in terms of hours viewed. and hours viewed leads to higher retention, more word of mouth, and more brand halo," says Chief Content Officer Ted Sarandos.
    • On the question of sports, Netflix still isn't interested: "I don't know that on-demand sports is markedly better than live sports," explains Sarandos. "The Internet TV proposition is more powerful for consumers" even if someone else, perhaps a combination of leagues, picks up the live sports part of Internet distribution, Hastings says.
    • NFLX now +11.5% after hours.
    • Previously: Netflix jumps 12.7% on strong subscription growth (Apr. 15 2015)
    • Previously: Netflix beats by $0.08, revenue in-line (Apr. 15 2015)
    | Wed, Apr. 15, 7:16 PM | 6 Comments
  • Wed, Apr. 15, 5:35 PM
    | Wed, Apr. 15, 5:35 PM | 2 Comments
  • Wed, Apr. 15, 4:18 PM
    • Netflix (NASDAQ:NFLX) is up 12.7% after hours on a Q1 report where it beat earnings expectations and pointed to total global streaming membership of 62.3M.
    • Netflix notes it added 2.3M new members, above its guidance of 1.8M, and added 2.6M new international members vs. guidance of 2.25M. Members streamed 10B hours in Q1.
    • Contribution margin for total streaming rose to 17.7% in Q1, up from a year-ago 15.6% and Q4's 13.6%. U.S. contribution margin ran to 31.7% from Q4's 28%. Content spending was lower than forecast.
    • The company expects to run ahead of U.S. margin growth of 200 bps/year in 2015 as costs are spread more globally. Netflix will shift some U.S. marketing budget to international, to play on growth opportunities.
    • Q2 forecast: 2.5M net adds (1.9M international, 0.6M in U.S.) and total streaming contribution margin of 15.4% (32% in U.S., -22.4% international).
    • CEO Reed Hastings, CFO David Wells and Chief Content Officer Ted Sarandos will do a live video interview at 6 p.m. ET, conducted by RBC's Mark Mahaney and MoffettNathanson's Michael Nathanson.
    • Q1 shareholder letter
    | Wed, Apr. 15, 4:18 PM | 32 Comments
  • Wed, Apr. 15, 4:08 PM
    • Netflix (NASDAQ:NFLX): Q1 EPS of $0.77 beats by $0.08.
    • Revenue of $1.57B (+23.6% Y/Y) in-line.
    • Shares +12.5%.
    • Press Release
    | Wed, Apr. 15, 4:08 PM | 21 Comments
  • Wed, Apr. 15, 9:26 AM
    • Netflix (NASDAQ:NFLX) renews Orange is the New Black for a fourth season with a target for a 2016 arrival.
    • The third season of the well-received series is scheduled to start streaming on June 12.
    • The company reports earnings today after the bell.
    • Analysts expect revenue growth of 24% to $1.57B and EPS of $0.69
    • Subscriber growth and management's comments on expansion will be watched closely.
    • Shares of Netflix have run up 15.6% gain over the last five sessions with confidence from investors seeming to be high.
    | Wed, Apr. 15, 9:26 AM | 7 Comments
  • Tue, Apr. 14, 5:35 PM
  • Mon, Apr. 13, 8:25 AM
    • Shares of Netflix (NASDAQ:NFLX) move higher in early action in reaction to Friday's announcement the company will increase its share authorization.
    • UBS is also chipping in with an upgrade on the stock to Buy from Neutral and a lofty price target of $565.
    • The investment firm is mesmerized by Netflix's powerful revenue growth track.
    • Previously: Netflix takes step to prep for stock split
    • NFLX +2.82% premarket to $467.41.
    | Mon, Apr. 13, 8:25 AM | 10 Comments
  • Fri, Apr. 10, 7:18 PM
    • Netflix (NASDAQ:NFLX) seeks to increase its share authorization to 5B shares from 170M.
    • The measure could indicate the company is planning for a stock split.
    • Netflix has its annual meeting set for June 9.
    • SEC Form 14A
    | Fri, Apr. 10, 7:18 PM | 11 Comments
  • Fri, Apr. 10, 6:59 AM
    • Citi upgrades Netflix (NASDAQ:NFLX) to a Buy rating from Neutral.
    • The investment firm likes the "reasonable" entry point at Netflix's current share price with investors getting the potential for international growth in new markets almost for free.
    • The strong content at Netflix also sets its apart from other streaming rivals, note analysts.
    • Citi fires up a price target of $525 on NFLX with a long-term upside call of $750 or higher.
    • NFLX +2.43% premarket to $450.
    | Fri, Apr. 10, 6:59 AM | 10 Comments
  • Thu, Apr. 9, 9:08 PM
    • Don't let recent merger challenges and failures fool you, Michael Wolff argues: "M&A mania" is coming to a media conglomerate near you amid pressure for a new wave of consolidation.
    • "Perhaps never before has consolidation been so much the flavor of the month, nor has it seemed so difficult to get a taste," he writes. "The table is set, but nobody's sitting down to eat."
    • If Comcast (NASDAQ:CMCSA) fails in its bid for Time Warner Cable (NYSE:TWC), he notes, it just means other cablers will step up to match Comcast's ambition, and Comcast will still look for a way to stay dominant.
    • He points to a number of mergers he thinks are easily imaginable: Viacom (NASDAQ:VIA) and FOX? Disney (NYSE:DIS) and Time Warner (NYSE:TWX)? TWC and Charter (NASDAQ:CHTR)? Discovery (NASDAQ:DISCA) and, well, most anyone (Disney, Fox, CBS)?
    • Factors encouraging the wave: Media's all about video now, and the pure-play aspect makes merger logic cleaner; distribution and content are separate and now even antagonistic businesses; the growth of over-the-top means not unbundling but re-bundling; and everyone needs scale for negotiation strength in content and ad deals.
    • Other key players: John Malone (LMCA, LBTYA, STRZA); Verizon (NYSE:VZ); Lions Gate (NYSE:LGF); Scripps Networks (NYSE:SNI); Netflix (NASDAQ:NFLX); DirecTV (NASDAQ:DTV) and AT&T (NYSE:T); Dish Network (NASDAQ:DISH).
    | Thu, Apr. 9, 9:08 PM | 17 Comments
  • Wed, Apr. 8, 3:48 PM
    • Netflix ((NASDAQ:NFLX+3.9%) trades higher on strong volume.
    • News that Google may offer its paid ad-free subscription service as early as this year didn't even create a ripple of worry.
    • Wedbush Securities is out with a cautious note backing its Underperform rating on the company, although the investment firm does see "upside" to Q1 earnings due to international growth and the House of Cards 3 release.
    • Netflix reports Q1 earnings on April 15. Analysts expect revenue of $1.571B and  EPS of $0.68 vs. company guidance of $0.60.
    | Wed, Apr. 8, 3:48 PM | 1 Comment
  • Thu, Apr. 2, 6:53 PM
    • Among a spate of original-content news at Netflix (NASDAQ:NFLX), the company just announced that it's ordered a fourth season of its flagship drama House of Cards, to begin production this summer and air in 2016.
    • The show, Netflix's highest-profile entry of what has been a rapidly growing slate of content, has won a number of Golden Globe and Primetime Emmy awards.
    • The other "House" news trending among viewers of a certain age: Netflix is reportedly close to ordering a new season of Full House, the ABC family comedy that ended its run in 1995, to be called Fuller House. ("Just a rumor," says a Netflix representative for now.)
    • More orders: a sketch-comedy show, With Bob and David, reuniting Mr. Show creators David Cross and Bob Odenkirk; and supernatural drama Montauk, from the creators of Wayward Pines.
    | Thu, Apr. 2, 6:53 PM | 7 Comments
  • Mon, Mar. 30, 11:19 AM
    • Netflix (NFLX +1.2%) adds former high-level Disney/ABC exec Anne Sweeney to its board.
    • Sweeney has deep experience launching studio-based movie networks.
    • The company also names Microsoft EVP and General Counsel Brad Smith to the board.
    • Current Netflix board
    | Mon, Mar. 30, 11:19 AM | 1 Comment
  • Fri, Mar. 27, 1:34 PM
    • TV Everywhere -- the business model providing authenticated premium TV streaming to multiple connected devices -- is now six years old, but after some strong 2014 growth may be poised to go mainstream, Adobe's 2014 digital-video study concludes.
    • Usage per quarter last year of authenticated streams averaged 13% of pay-TV subscribers, double the same figure from 2013 and more than triple the 4% in Q1 of 2013.
    • While HBO Go (NYSE:TWX) has proved popular, gains were helped by NBC's (NASDAQ:CMCSA) strong promotion of TV Everywhere for the Sochi Winter Olympics, among other big sporting events.
    • The report looked at 2.1B authenticated video views for 2014 vs. 574M in 2013. It predicts that overall active viewership will reach 18% by year-end, even without major sports events this year, and that online viewing on mobile devices will pass desktop viewing by Q4 2016.
    • Among Adobe's other predictions: The combined AT&T/DirecTV will offer a "skinny" OTT service to compete with Sling TV (NASDAQ:DISH) and Netflix (NASDAQ:NFLX); big MVPDs will follow Comcast in making the experience better; and cable companies will follow NBC in making more back catalog content available on demand.
    | Fri, Mar. 27, 1:34 PM | Comment!
  • Thu, Mar. 26, 1:46 PM
    • Nielsen (NLSN +0.4%) expects to begin tracking Netflix (NFLX -0.7%) and Amazon Prime usage sometime in the middle part of this year.
    • The company's aim is to measure total audience, although the methodology used to pin a number to streaming viewers is expected to draw some criticism.
    • Netflix, Hulu, and Amazon all keep a tight lid on viewing data.
    | Thu, Mar. 26, 1:46 PM | 1 Comment
Company Description
Netflix Inc operates as an Internet television network providing TV shows & movies which include original series, documentaries & feature films. The Company has three segments namely Domestic streaming, International streaming & Domestic DVD.
Sector: Services
Country: United States