- Netflix Q2 23 – 19/07 – despite a minor setback after releasing their Q1 numbers Netflix shares have continued to make gains, pushing to one-year highs earlier this month. Having delivered Q1 revenues of $8.16bn, and profits of $2.88c a share, the shares slipped on the Q2 guidance which was for $8.24bn. Subscriber numbers were also disappointing rising 1.75m to 232.5m, below forecasts of 2.41m, however Netflix has made it clear that the numbers are less important than the revenue generated. In every region bar one, subscriber numbers fell short of market expectations, none more so than in Latin America which saw a decline of 450k, although this was more than offset by a gain of 1.46m in the Asia Pacific region. On guidance, Netflix said they expected to deliver Q2 revenues of $8.24bn, with an expectation of profits of $1.28bn or $2.84c a share. Netflix could see a drop in subscriber numbers on this quarter as it rolled out paid sharing in the UK and US. If current trends are any guide this could prompt some initial cancellations which could slow subscriber growth, however, if the name of the game is to maximise revenue, then there's every chance that won't unduly slow the overall trend to sustainable cash flow and steady margin. Netflix says it expects to generate $3.5bn free cash flow for the full year 2023, up from the prior expectation of $3bn.
