Netflix (NFLX) Q1 2021 earnings

(L-R) Reed Hastings and Ted Sarandos attend the “Marseille” Netflix TV Serie World Premiere At Palais Du Pharo In Marseille, on Might 4, 2016 in Marseille, France.

Stephane Cardinale | Corbis | Getty Pictures

Netflix shares fell as a lot as 11% in after-hours buying and selling after reporting a big miss in subscriber numbers in its first-quarter earnings report. The corporate additionally mentioned it solely expects so as to add about 1 million subscribers within the present quarter.

Listed here are the important thing numbers:

  • Earnings per share (EPS): $3.75, vs $2.97 anticipated, in keeping with Refinitiv survey of analysts
  • Income: $7.16 billion, vs $7.13 billion anticipated, in keeping with Refinitiv
  • International paid internet subscriber additions: 3.98 million vs 6.2 million anticipated, in keeping with Factset

“We imagine paid membership progress slowed because of the large Covid-19 pull ahead in 2020 and a lighter content material slate within the first half of this yr, because of Covid-19 manufacturing delays,” Netflix mentioned in its letter to shareholders.

Netflix has continued to carry itself in opposition to a bevy of rivals together with Disney‘s Disney+ and Hulu, AT&T‘s HBO Max, Apple TV+, Amazon Prime and Comcast NBCUniversal’s Peacock. The corporate mentioned in its report that it does not imagine competitors performed an element within the weak subscriber numbers.

“We do not imagine aggressive depth materially modified within the quarter or was a fabric issue within the variance because the over-forecast was throughout all of our areas,” in keeping with the report.

Netflix additionally anticipates its content material to select again up later within the yr, following manufacturing delays brought on by the Covid-19 pandemic.

“As we have famous beforehand, the manufacturing delays from Covid-19 in 2020 will result in a 2021 slate that’s extra closely second half weighted with numerous returning franchises,” the corporate mentioned.

The corporate mentioned that manufacturing is again up and operating in almost all of its main markets. If that continues, Netflix mentioned it expects to spend greater than $17 billion in money on content material this yr.

The corporate’s income grew 24% yr over yr and was in keeping with its starting of quarter forecast, Netflix mentioned. It additionally delivered a powerful beat on earnings in comparison with Avenue estimates.

Netflix additionally accepted a buyback program to repurchase as much as $5 billion in widespread inventory, starting in 2021 with no mounted expiration date. That is anticipated to start the quarter, the corporate mentioned.

This story is creating. Please examine again for updates.

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