Netflix, Inc. (NASDAQ:NFLX) 2024 Q1 Financial Results Call Record April 18, 2024
Spencer Wang: Hello. Welcome to the Netflix Q1 2024 Earnings Interview. I’m Spencer Wang, Vice President of Finance, Investor Relations, and Corporate Development. Joining me today are co-CEOs Ted Sarandos and Greg Peters. and CFO Spence Newman. Please note that the Company has made forward-looking statements, and actual results may differ.
A – Spencer Wang: We’ll now take questions from the analyst community. We’ll start with a few questions about paid membership reporting in performance and forecasting. The first question comes from Justin Patterson from KeyBanc. And we’re going to direct this to Greg at first. Greg, can you talk about the decision to discontinue quarterly reporting of members and his ARM data in 2025? Why eliminate this? And you mentioned that success starts with engagement, how do you think about expanding these disclosures?
Greg Peters: yes. As we stated in our letter, we are evolving and intend to continue to do so as we develop our revenue model and add things that are not directly relevant to our large number of members, such as advertising and additional member features. We have also evolved our pricing and plans with multiple tiers with different price points for each country. I think these price ranges will become increasingly different. Therefore, each incremental member has a different impact on the business. All of this means that the simple calculations we’ve all made of membership numbers and monthly fees are becoming less and less accurate in understanding the health of your business. Therefore, there is a real motivation for this change to focus on the key metrics that are considered most important to the business.
So we’re going to report and guide you on revenue, OI, OI margin, net income, EPS, and free cash flow. We’re adding new annual guidance on revenue ranges to provide a little more long-term perspective. We also will not be silent on our members. We update regularly and announce when we grow and reach certain major milestones. It is not part of our regular reporting. And we want to do all of this carefully and give everyone time to adjust to this transition. As such, we plan to continue reporting subscriber numbers through the first quarter of next year and link to our next annual revenue guidance in 2025. So we think this will give us some long-term continuity. And we hope that it will be an effective bridge and transition.
But ultimately, we believe this is a better approach that reflects the evolution of our business and is more aligned and consistent with how we manage engagement, revenue and profit internally.
The 30 least developed countries in Africa in 2024 and
The 30 countries with the most vulnerable jobs in the world.
To continue reading the Q&A session, click here.
