FILE PHOTO: The Netflix logo is seen on their office in Hollywood, Los Angeles, California, U.S. July 16, 2018. REUTERS/Lucy Nicholson/File Photo – RC1321A99D40
Netflix (NFLX) has released its Q1 2023 earnings report, and the streaming giant exceeded expectations with its subscriber growth. However, the company fell short in terms of revenue and earnings per share.
According to the report, Netflix added 10 million subscribers in Q1, bringing its total subscriber count to 242 million worldwide. This growth exceeded the company’s forecast of 8.5 million subscribers and was largely driven by its international expansion.
Despite the strong subscriber growth, Netflix fell short on revenue and earnings per share. The company reported revenue of $8.4 billion, which was slightly lower than analysts’ estimates of $8.4 billion. Additionally, earnings per share came in at $2.97, which was below expectations of $3.16.
In a letter to shareholders, Netflix acknowledged the revenue and earnings miss but highlighted the strong subscriber growth as a positive sign for the company’s future. The company also noted that it has a strong content pipeline and plans to continue investing in original content to fuel its growth.
Netflix’s Q1 2023 earnings report showed strong subscriber growth but fell short in terms of revenue and earnings per share. Despite the miss, the company remains optimistic about its future and plans to continue investing in original content to drive growth.
Once the earnings report was out, Netflix doubled down on its password sharing clampdown by saying it would start enforcing it this summer. So there you have it, Netflix is coming out against password sharing which they say has had an impact on their revenue and actual subscriber base.
