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What To Expect From Netflix's Earnings Report After The Bell

April 18, 2023
minute read

A look at Netflix's subscriber numbers, especially for its ad-supported tier, will be closely monitored after the bell on Tuesday.

The company still reports its total user count, in the U.S. as well as globally, every quarter, even without providing guidance for subscribers.

Among the analysts surveyed by Refinitiv, Wall Street expects:

Earnings per share: $2.86 is expected

Revenue: Expected to reach $8.18 billion

Its shares, along with those of its media peers, plunged last year after Netflix reported its first subscriber loss in a decade. Netflix and its streaming rivals were forced to focus on profits over subscriber numbers as a result of these results.

There will be an emphasis on the results of the new ad-supported tier in the country. A cheaper version of Netflix with commercials launched last November for $6.99 a month. Streaming competition ramped up shortly after the ad-supported tier became available.

A new tier of ad-supported subscriptions is likely to be offered by the company in the future, according to co-CEO Ted Sarandos.

Netflix's crackdown on password sharing is another focus for Wall Street. People who have been borrowing other accounts would be able to create their own accounts by late last year.

Approximately 43% of the company's global user base share accounts, or more than 100 million households. A lack of investment in new content has adversely affected Netflix's ability to make new acquisitions. Password sharing and ad-supported options are intended to increase profits.

Password-sharing guidelines were released by Netflix in four countries: New Zealand, Canada, Portugal, and Spain. For users in those countries, the company says it will ask them to set up a "primary location" and allow them to establish up to two "sub accounts" for people who don't live nearby.

Although it is expected to provide U.S. password-sharing guidance this year, the company has not yet done so.

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Adan Harris
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