Netflix reports 9% revenue growth, global subs -0.97M

• Netflix press release (NASDAQ:NFLX): Q2 GAAP EPS of $3.20 beats by $0.26.
• Revenue of $7.97B (+8.6% Y/Y) misses by $60M.
• Global streaming paid net additions -0.97M vs. -2M guidance. Global Streaming Paid Memberships: 220.67M vs. 219.64M guidance.
• Q3 Guidance: Revenue of $7.84B vs. $8.10B consensus, EPS of $2.14 vs. $2.76 consensus.
• Global Streaming Paid Memberships: 221.67M, Global streaming paid net additions 1.00M.

Comments

[101VET]

Two packs of Marlboros are 16 bucks. People just throw money away nowadays. Just because subscribers are leaving don’t mean they won’t be back.

[jdhawk]

Wall Street is overlooking the dismal subscriber miss but all a titter about charging customers for multiple log ins and showing ads.

In regards to ads, if anyone has been around long enough this is how cable started. Cable was advertised as no ads - never going to have - don't even think about it. Sign up! Then, they started creeping in. Now, for every 60 minute show, you are watching 22-24 minutes of advertising.

I liked the show Bosch over on Amazon. When it returned as Bosch Legacy I looked forward to it. Then, after watching the first 20 minutes up popped ads. Haven't looked at it since.

If Netflix starts showing ads, but doesn't provide a no ads subscription I will cancel.

[nerd_rage]

@jdhawk The password crackdown is sheer distraction, hoping we'll miss the part about North American subscribers defecting to the competition.

[Gregorian]

@jdhawk I have only heard they will offer an ad-based free version, like spotify. The main service should be without ads, otherwise I will cancel that.

[Seeking more alpha than you]

@jdhawk "If Netflix starts showing ads, but doesn't provide a no ads subscription I will cancel." Okay that's fine - no biggie.

[SPDY84]

Only adding 1M instead of the 1.8M expected. Huge miss, but this quarter wasn’t as bad as expected so this will rally this week. I’m really hoping the market goes for it tomorrow to fill those gaps. I’d like to short from the SPX around 4000

[European investor 99]

@SPDY84 if spx goes 4000 likely will hit 5-6000 as well. Not sure it’sa great idea

[Senna Capital]

@Stock nomad just a bear market rally, this is far from over

[European investor 99]

@Senna Capital Elliot wave tells me otherwise. it is a correction before next run up and a huge bear market after. recession? we had recession in WW2, in 2020 and many other times. Raising rates? been much higher interest in the past and market was just fine. I am not worried in general, with this kind of inflation bank account, treasury, or gold isn't the best investment just yet.

[Seeking more alpha than you]

But but but the sky was falling and everyone was saying they would leave Netflix! Told you all negative comments online is just noise and should never be taken seriously.

[nerd_rage]

@Seeking more alpha than you The fundamental weakness underlying the negativity still exists. It won't drag NFLX down tomorrow but it's a sign of what could be a long term trend.

NFLX is losing customers most heavily in its most lucrative market, which happens to be the one where they also have the most competition. Now why wouldn't that competition percolate out to all the other regions with similar results?

[Seeking more alpha than you]

@nerd_rage I think the small percentage of subscribers that they lost will be back when they see that Netflix called their bluff and is moving forward with price increases, password sharing upcharges and ad-free tiers. The statement Netflix is making is leave if you want life will go on with you. I am so happy to see Netflix doing this. I love it!

[dave403]

@Seeking more alpha than you I canceled Netflix (no problem, just wasn’t watching it), I’ve gotten 3 emails thus far offering a discounted price if I’ll sign back up..

[DividendNow]

Nothing new here

[ritholtz47]

Back to delivering again. Should have hold on to my holdings. There won't be any crash back to $140 levels.

[TheRagingBulll]

Netflix and chill babyyy

[djmv215]

Nice result in the middle of war and inflation. UP TOMO big time

[ppointer]

Still not a buy for me. Looks like soon I will be paying at least another $2.99 per month for the service, though. Not enough of a bump to make me change our account behavior.

[Finding Your Retirement]

Global streaming paid net additions -0.97M vs. -2M guidance

this is all you need to know. Calls printing now pay me.

[ccm800]

Better than expected for sure, but they are essentially a no/low growth company at this point. Why do they trade at a premium to companies like WBD and PARA?

[nerd_rage]

@ccm800 WBD is the one to buy. NFLX is losing customers in North America and I bet I know one place a lot of them are going: HBO Max. This is less about short term results than about long term trends. Competitive weakness is showing up first in North America but the competitors haven't even completed their global rollouts yet.

[ccm800]

@nerd_rage I agree, HBO Max and possibly Apple TV. Apple TV has had some great quality content recently.

HBO has House of the Dragon coming in August, that alone will spur a bit of spike in subscribers.

[yellowpage]

@ccm800 Because Netflix is only profitable streaming service. They will survive no matter what. WBD and PARA ain't there yet.

[Pattonholdings]

Currently #3 in industry, better look out behind, Paramount/CBS is gaining! Stranger than Stranger Things needed, maybe Dancing w/ Squid Games? [See They Shoot Horses Also].

[Chris Lau]

Markets like with +8.3% AH.
Netflix and Chill, not Netflix and Drill (Puts)

[SamsSuperCereal]

This is interesting, it kind of makes a good "middle of the road" argument for earnings season. Because this wasn't good news, but it also wasn't as bad as it could have been.

[damcooldav3]

Big question is, will they consider the additional households paying $3/month a subscriber?

[Devn1]

@damcooldav3 yes as they should ..no more free loading for the losers

[Dan Victor, CFA]

its an earnings growth story.. cut out the garbage documentaries/ comedy specials/ originals no one watches and they will be rolling in cash.. BULLISH

[Diesel]

The results aren't that good but the stock got punished so heavily in the last few months that it could get a relief rally.

[1winner]

@Diesel more like a fade the pop, as no indication anything is getting any better

[rudz]

up then down...fake out imminent

[apineda7000]

They will lose more next quarter and costs are soaring…. Sell

[proctormap]

not as bad as everyone feared. bet the stock rips

[1winner]

@proctormap its done growing..any rip will be faded

[proctormap]

@1winner depends on your definition of growth. Time will tell.