19.04.2024 16:15:01 - dpa-AFX: Netflix To Stop Sharing Subscriber Data; Stock Dips

WASHINGTON (dpa-AFX) - Netflix Inc. shares were losing more than 6 percent
on Friday's initial trading after the company announced plans to stop sharing
its quarterly subscriber numbers, a key metrics, and average revenue per member
from the first quarter of 2025.

For the second quarter, the video streaming giant also projects sequentially
lower paid net additions, saying it's due to typical seasonality, while global
ARM would be up year-over-year. For the quarter, revenue growth is expected to
be 16 percent.

In its first quarter, while reporting higher profit and revenues, the company
said it gained 9.3 million new subscribers, significantly higher than last
year's 1.75 million, reaching total subscribers of 269.60 million, 16 percent
higher than last year. Meanwhile, net additions dropped sequentially from the
13.12 million subscribers it gained in the preceding fourth quarter.

While announcing the decision to stop sharing the member data, the company said,
'In our early days, when we had little revenue or profit, membership growth was
a strong indicator of our future potential. But now we're generating very
substantial profit and free cash flow (FCF). We are also developing new revenue
streams like advertising and our extra member feature, so memberships are just
one component of our growth.'

In 2023, the company had stopped providing quarterly paid membership guidance.

However, the company plans to periodically update on members when it grows and
hit certain major milestones, just that it's not going to be part of its regular
reporting. According to the firm, stopping the subscriber data is a better
approach that reflects the evolution of the business, and it more matches and is
consistent with how it manages internally to engagement, revenue and profit.

For the full year 2024, Netflix expects healthy revenue growth of 13 percent to
15 percent, and operating margin of 25 percent, up from prior forecast of 24
percent.

On the Nasdaq, Netflix shares were trading at $572.47, down 6.2 percent.



Copyright(c) 2024 RTTNews.com. All Rights Reserved

Copyright RTT News/dpa-AFX
Name WKN Börse Kurs Datum/Zeit Diff. Diff. % Geld Brief Erster Schluss
NETFLIX INC. DL-,001 552484 Frankfurt 694,500 31.10.24 21:50:01 +0,500 +0,07% 0,000 0,000 692,000 694,000

© 2000-2024 DZ BANK AG. Bitte beachten Sie die Nutzungsbedingungen | Impressum
2024 Infront Financial Technology GmbH