Greg Peters, Co-CEO of Netflix, speaks on a keynote about the future of entertainment on Mobile World Congress 2023.
Joan Cros | Nurphoto | Getty images
Netflix Managers sent a message on Thursday that everything is fine with the company in the light of economic turbulence. But the prospects on the entire year tells a slightly more nuanced story.
Netflix placed a large beat on the operational margin for the first quarter and reported 31.7% compared to the average estimate of 28.5%, according to Street account. And it led well above the estimates of the analysts for the second quarter – 33.3% against an average estimate of 30%.
Due to his own formulation, Netflix was “Vooruit” of his own guidelines for the first quarter and is “following the center of our income range of 2025.”
Nevertheless, Netflix refused to change one of his projections in the longer term. That suggests that Netflix is not so confident in the second half.
“There has been no material change in our general business prospects since our last winning report,” Netflix wrote to shareholders in her quarterly memorandum.
US Consumer Sentiment has been at the second lowest level since 1952 as the new rate policy of President Donald Trump Roil markets.
Co-CEO Greg Peters noted during the company's profit conference that Netflix has been “generally pretty resilient” against economic delays in the past. Home Entertainment offers a cheaper form of free time than most other activities. A monthly Netflix subscription with advertisements costs $ 7.99.
But the question remains how – whether that – an economic delay would squeeze the portfolios of Americans and force a higher churn under streaming subscriptions.
Netflix stopped reporting every three -month subscribers this quarter, so the company will probably not describe if it sees a customer slow down later this year, except reporting his underlying income and profit.
The turnover of the first quarter of $ 10.5 billion was roughly in accordance with the expectations of the analysts, while the guidelines of the second quarter of $ 11 billion are slightly higher.
“Retention, that is stable and strong. We have seen nothing important in a planning mix or plan rate,” said Peters. “Things generally look stable.”
