Netflix revealed an EPS of $3.75, topping the $2.97 expected. Revenue also came ahead of the $7.13 billion consensus at $7.16 billion.
On the other hand, the number of global paid net subscriber additions came below estimates. According to FactSet, Netflix gained 3.98 million new users in the past quarter versus the 6.2 million expected. Netflix stated the slowdown in the number of subscribers was caused by the ongoing pandemic, which forced it to delay some shows and films. The company anticipates that the content will pick up later in 2021.
However, Netflix managed to hold itself up against competitors like Disney+ and Hulu, HBO Max, Apple TV+, and Amazon Prime.
For the future, Netflix will continue its buyback program to repurchase up to $5 billion on common stock. Moreover, it expects 1 million paid net subscribers in Q2.
After the news hit the wires, Netflix stock price fell more than 10%.
Source: cnbc.com, factset.com