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Netflix password crackdown and ad scheme to shine through in 1Q results

Published 2024-04-18, 10:30 a/m
© Reuters.  Netflix password crackdown and ad scheme to shine through in 1Q results

Proactive Investors - Netflix Inc (NASDAQ:NFLX, ETR:NFC) should lay down double-digit revenue growth when reporting on its first quarter performance next Thursday, April 18, according to analysts.

As the streaming giant’s clampdown on password sharing and the introduction of cheaper advert-featuring subscriptions bear fruit, markets expect revenue will have climbed 13.6%.

Revenue sat at $8.16 billion over the first quarter of 2023, as global paid memberships climbed to 232.5 million.

By the end of 2023, global subscriptions grew to 260.28 million, with Hargreaves Lansdown (LON:HRGV) analyst Sophie Lund-Yates noting this was the figure to watch out for.

“As ever, it’s subscriber growth and churn rate that have the potential to move the dial next week,” she commented.

“There’s cautious optimism that attraction and retention of viewers will hold Netflix in good stead but, as ever, there are no guarantees.”

That said, there should “still be some juice left to squeeze” from a clampdown on account sharing, according to Lund-Yates, while Netflix has “room to run” with ad-supported account prices.

Netflix itself previously guided for revenue to climb by 13.2% to $9.2 billion over the first quarter, adding diluted per-share earnings should sit at $4.49.

Shares of the company traded higher on Thursday in the leadup to its report, up 0.5% at $616.61. Netflix shares have gained about 88% in the last 12 months.

- Updated with share price movement -

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