Overall, Netflix earned 75 3.75 per share. Expected $ 2.97. The company’s revenue rose about 25 percent to $ 7.16 billion. Consensus 7.13 billion.
However, all the key figures, as well as the number of new paying customers, were disappointed throughout the group. This is 3.98 million. However, more than two million (6.02 million) were expected. That, too, was below Netflix ‘own forecast.
The company justifies this by the drag perspective effects caused by corona and epidemic-related delays in producing new content in the first half of the year. However, the second half of the year is expected to be strong and new hits will be released. According to Netflix, increasing competition pressure has not played a decisive role in Q1’s poor user growth.
Netflix has undoubtedly disappointed in its user development. Accordingly, sales by numbers are not surprising. However, the streaming agent was able to persuade in terms of sales and profits. In the long run, today’s numbers are solid. Sooner or later, user growth in the streaming market will be completed. It all depends on the best content and profitability of the business model. Here Netflix is already well established.
Note on conflicts of interest:
The author holds direct positions on the following financial instruments mentioned in the publication or related derivatives that benefit from any price increase resulting from the publication: Netflix