Netflix (NFLX) has reported in with its Q1 2023 earnings results. The company has also posted its early forecast for the next quarter, aiming to post a slight revenue increased with a marginally lower EPS. However, it is expected to fall below analyst expectations both in terms of EPS and revenue.
Analysts had expected an $8.5 billion revenue and $3.05 diluted EPS for Q2 2023. Netflix is instead posting $8.24 billion revenue and $2.84 diluted EPS guidance numbers for the next quarter. This comes in the wake of the company posting $8.162 billion in revenue for Q1 2023 with a $2.88 diluted EPS off a 4.9 percent year-over-year increase.
The following was posted to the Netflix website:
Operating income totaled $1.7B vs. $2.0B in Q1‘22 - above our guidance forecast of $1.6B due to ongoing expense management and timing of hiring and content spend. Operating margin was 21% compared to 25% in the year ago period. The year over year decline in operating margin was primarily due to F/X - the appreciation of the US dollar accounted for roughly three percentage points of the year over year change in operating margin. Q1’23 EPS of $2.88 (vs. $3.53 in Q1‘22) was in-line with our guidance of $2.82 and included an $81 million non-cash unrealized loss from F/X remeasurement on our Euro denominated debt.
Netflix aims to sustain double-digit growth over the course of 2023 while also noting that it is on track to meet its financial objectives for the year. Part of the financial strategy involves paid sharing, which will continue to roll out throughout Q2 2022 and beyond.
We'll continue to monitor everything happening with Netflix as we analyze today's Q1 2023 earnings report. Be sure to follow the Netflix topic page for any further updates.