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Here's What Key Metrics Tell Us About Netflix (NFLX) Q2 Earnings
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For the quarter ended June 2023, Netflix (NFLX - Free Report) reported revenue of $8.19 billion, up 2.7% over the same period last year. EPS came in at $3.29, compared to $3.20 in the year-ago quarter.
The reported revenue represents a surprise of -0.93% over the Zacks Consensus Estimate of $8.26 billion. With the consensus EPS estimate being $2.83, the EPS surprise was +16.25%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Netflix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
UCAN - Paid memberships at end of period: 75571 thousand compared to the 74261.23 thousand average estimate based on seven analysts.
APAC - Paid memberships at end of period: 40546 thousand versus the seven-analyst average estimate of 40462.39 thousand.
EMEA -Paid memberships at end of period: 79807 thousand versus 78109.74 thousand estimated by seven analysts on average.
LATAM - Paid memberships at end of period: 42466 thousand versus 41419.99 thousand estimated by seven analysts on average.
APAC - Average revenue per membership: $7.66 compared to the $7.97 average estimate based on six analysts.
EMEA - Average paying memberships: 78590 thousand compared to the 77735.84 thousand average estimate based on six analysts.
UCAN - Average revenue per membership: $16 compared to the $16.23 average estimate based on six analysts.
UCAN - Average paying memberships: 74985 thousand compared to the 74302.55 thousand average estimate based on six analysts.
Revenue- United States and Canada (UCAN): $3.60 billion versus $3.65 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +1.7% change.
Revenue- Asia-Pacific (APAC): $919.27 million versus $959.06 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +1.3% change.
Revenue- Latin America (LATAM): $1.08 billion compared to the $1.08 billion average estimate based on eight analysts. The reported number represents a change of +4.6% year over year.
Revenue- Europe, Middle East and Africa (EMEA): $2.56 billion compared to the $2.59 billion average estimate based on eight analysts. The reported number represents a change of +4.3% year over year.
Shares of Netflix have returned +12.5% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Here's What Key Metrics Tell Us About Netflix (NFLX) Q2 Earnings
For the quarter ended June 2023, Netflix (NFLX - Free Report) reported revenue of $8.19 billion, up 2.7% over the same period last year. EPS came in at $3.29, compared to $3.20 in the year-ago quarter.
The reported revenue represents a surprise of -0.93% over the Zacks Consensus Estimate of $8.26 billion. With the consensus EPS estimate being $2.83, the EPS surprise was +16.25%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Netflix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- UCAN - Paid memberships at end of period: 75571 thousand compared to the 74261.23 thousand average estimate based on seven analysts.
- APAC - Paid memberships at end of period: 40546 thousand versus the seven-analyst average estimate of 40462.39 thousand.
- EMEA -Paid memberships at end of period: 79807 thousand versus 78109.74 thousand estimated by seven analysts on average.
- LATAM - Paid memberships at end of period: 42466 thousand versus 41419.99 thousand estimated by seven analysts on average.
- APAC - Average revenue per membership: $7.66 compared to the $7.97 average estimate based on six analysts.
- EMEA - Average paying memberships: 78590 thousand compared to the 77735.84 thousand average estimate based on six analysts.
- UCAN - Average revenue per membership: $16 compared to the $16.23 average estimate based on six analysts.
- UCAN - Average paying memberships: 74985 thousand compared to the 74302.55 thousand average estimate based on six analysts.
- Revenue- United States and Canada (UCAN): $3.60 billion versus $3.65 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +1.7% change.
- Revenue- Asia-Pacific (APAC): $919.27 million versus $959.06 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +1.3% change.
- Revenue- Latin America (LATAM): $1.08 billion compared to the $1.08 billion average estimate based on eight analysts. The reported number represents a change of +4.6% year over year.
- Revenue- Europe, Middle East and Africa (EMEA): $2.56 billion compared to the $2.59 billion average estimate based on eight analysts. The reported number represents a change of +4.3% year over year.
View all Key Company Metrics for Netflix here>>>Shares of Netflix have returned +12.5% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.