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Saturday 16 November 2013

This time around, Netflix is doing something highly unusual

Netflix Q2 2013 Earnings Interview




This time around, Netflix is doing something highly unusual. It's skipping the standard analyst conference call in favor of a live talk on CNBC.


CEO Reed Hastings and CFO David Wells will host a video discussion about the company's financial results and outlook. The conversation will be moderated by analyst Rich Greenfield of BTIG Research and CNBC's Julia Boorstin. Viewers can submit questions via email or Twitter.


Today's earnings follow the company making broadcast history last week with 14 primetime Emmy Award nominations. Netflix's well-received "House of Cards" is the first show delivered strictly online to earn an Emmy nod.


Netflix Q2 2013 earnings are out and they are in line with Wall Street.
Revenue is the same as expectations and EPS is above estimates. The stock dropped about 7% in after-hours trading.


The big numbers are:


Revenue: $1.07 billion versus $1.07 billion estimate.
EPS: $0.49 versus $0.40 estimate
Earnings guidance: Sees Q3 EPS $0.30 - $0.56.
Netflix added 630,000 streaming subscribers in the U.S. during the second quarter totaling 29.81 million domestic and 8 million international subscribers.


The reason for the dip in stock price is because of Q3 guidance. Analysts had hoped Netflix's original series, particularly Arrested Development, would bring in closer to 900,000 new streaming subscribers.


Netflix's original series are a huge draw for new subscribers. The company says that it assess the success of each original by "looking at viewing-to-date and estimated future viewing, relative to cost." Netflix also noted that it has ordered second seasons of all first season projects, "which is quite unusual".

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