[Financial Summary] Disappointment with Netflix's forecast for increased sales and profit due to drastic increase in number of members
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A major US video distribution service company $Netflix(NFLX.US$announced financial results for the fiscal year ending 2024/1-3 on the 18th. Sales compared to the same period last year15% increase of $9.37 billion, net profit$2,332 billion, up 79%It was. Both sales and profitExceed market expectationsI got it.
In addition to the effect of prohibiting “just riding” to share accounts, contracts for cheap plans with advertisements increased by 65%, and the number of members9.3 million people in 3 monthsIt recorded an increase of nearly 2 times that expected by the market. Sales and profit increased for 4 consecutive quarters, and on a quarterly basisRecord profit updateI did it.
A major US video distribution service company $Netflix(NFLX.US$announced financial results for the fiscal year ending 2024/1-3 on the 18th. Sales compared to the same period last year15% increase of $9.37 billion, net profit$2,332 billion, up 79%It was. Both sales and profitExceed market expectationsI got it.
In addition to the effect of prohibiting “just riding” to share accounts, contracts for cheap plans with advertisements increased by 65%, and the number of members9.3 million people in 3 monthsIt recorded an increase of nearly 2 times that expected by the market. Sales and profit increased for 4 consecutive quarters, and on a quarterly basisRecord profit updateI did it.
![[Financial Summary] Disappointment with Netflix's forecast for increased sales and profit due to drastic increase in number of members](https://sgsnsimg.moomoo.com/sns_client_feed/181250687/20240419/0159acd0ae8c4c9e8cb23f0e9ea10f4e.png/big?area=105&is_public=true)
Despite strong financial results, stock prices were traded overtime after closing7.4% decline at one timeI did it.
The company wrote in a letter to investors on the 18th that the net increase in membership for the fiscal year ending 24-4 to 6 was compared to the January-March fiscal year due to seasonality reasonsThe forecast is that it will slow downI showed it. The sales forecast for the second quarter was 9.49 billion dollars, which was lower than analysts' expectations of 9.537 billion dollars.
Also, NetflixStop disclosing the number of new members on a quarterly basis from the first quarter of 2025The policy of announcing only when a milestone has been reached has been clarified. These indicators have long been the main means of evaluating Netflix's performance for the US financial market, but the company is trying to shift its focus to traditional indicators such as sales and profit.
Also, NetflixStop disclosing the number of new members on a quarterly basis from the first quarter of 2025The policy of announcing only when a milestone has been reached has been clarified. These indicators have long been the main means of evaluating Netflix's performance for the US financial market, but the company is trying to shift its focus to traditional indicators such as sales and profit.
Magalie Grossheim, a senior stock research analyst at M Science, said, “Charges for account sharing may bring benefits for a few more quarters, but I don't know what will drive the increase in membership thereafter,” and pointed out that it is for this reason that they decided to stop publishing numbers.
Source: moomoo, Nihon Keizai Shimbun, Bloomberg, Reuters, Netflix IR
This article uses automatic translation for some parts
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