Netflix (NFLX) earnings Q1 2026
Netflix co-founder and CEO Reed Hastings will be in Sydney on 25 February 2022 to meet with executives from other subscription streaming services.
Wolter Peeters | Fairfax Media | Getty Images
netflix Shares of the streaming giant fell nearly 9% in extended trading Thursday. First quarter earnings report.
The company beat Wall Street’s revenue expectations by reporting $12.25 billion for the first quarter; This was above the $12.18 billion that analysts polled by LSEG expected and was 16% higher than the $10.54 billion it reported in the prior-year quarter.
Thursday marked the company’s first earnings report since abandoning the proposed acquisition. Warner Bros. Discovery’s Broadcast and film assets in February.
Netflix reported net income of $5.28 billion, or $1.23 per share, nearly double the $2.89 billion (66 cents per share) it reported in the same period last year. The company cited higher-than-forecast operating revenue and a $2.8 billion termination fee it received after the WBD deal fell through.
Reported EPS doesn’t immediately compare to analysts’ expectations of 76 cents.
On Thursday, Netflix also announced: Reed HastingsNetflix’s co-founder and current chairman will leave the board in June when his term expires.
Hastings steps down as CEO in 2023. Greg Peters, who served as chief operating officer, stepped into the co-CEO role alongside Ted Sarandos.
“Netflix changed my life in so many ways, and my all-time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service,” Hastings said in the company’s statement. he said. shareholder letter on Thursday. Hastings will now focus on philanthropy and other endeavors, according to the letter.
First quarter outlook
Netflix reported that both its revenue and operating income rose 16% and 18%, respectively, in the first quarter, due to “slightly above planned subscription revenue.”
Last month, Netflix announced that it would increase prices on all its streaming plans.
“Our recent price changes have gone well, reflecting the strong value we provide to members,” the company said in its shareholder letter on Thursday.
Netflix also reiterated that it’s on track to hit $3 billion in ad revenue by 2026, or a two-fold increase from the previous year, as it begins to see progress on its new revenue pipeline show growth.
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