Jan 17, 2019

Netflix stock drops after mixed Q4 earnings results

Photo: Chesnot/Getty Images

Netflix stock was down roughly 4% in after-hours trading Thursday after the company posted quarterly results that missed investor expectations on revenue, though it beat earnings expectations.

Yes, but: Most importantly to Wall Street, Netflix beat expectations for user growth, growing its total paid subscriber base to nearly 140 million worldwide.

Why it matters: Netflix is under pressure to continue adding users in a streaming market that's becoming much more competitive and saturated. It's also under pressure to capture more time from its users' media diets.

  • Key quote: "We compete with (and lose to) Fortnite more than HBO."
  • Key stat: The company says that, per its calculations, Netflix viewing now accounts for 10% of television screen time in the United States among its subscribers.

By the numbers, per CNBC:

  • Earnings per share (EPS): 30 cents, vs. 24 cents forecast by Refinitiv consensus estimates
  • Revenue: $4.19 billion, vs. $4.21 billion forecast by Refinitiv consensus estimates
  • Total paid subscriber additions: 8.84 million vs. 7.61 forecast by FactSet
  • Domestic paid subscriber additions: 1.53 million, vs. 1.5 million forecast by FactSet
  • International paid subscriber additions: 7.31 million, vs. 6.1 million forecast by FactSet

News: The company anticipates that 80 million households will have watched its new hit "Bird Box" in the first four weeks of its release.

  • It also released internal viewing numbers for some of its other new hits, like 20 million household views in its first week out for its Spanish original show “Elite."

Between the lines: Netflix’s business model is to accumulate as many users as possible, then slowly hike the prices on those users to reach profitability. Its earnings release spoke to programming changes around that strategy.

  • On Tuesday, the company announced it is raising prices on all three of its subscription tiers in order to foot the bill for more original programming.
  • It said in its earnings release that it is focusing more on original content now than other companies' programming.
  • In its earnings release, Netflix highlighted, as it has done for several quarters now, that its original programming acts as a launching pad for new Hollywood stars.

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World coronavirus updates: Confirmed cases top 1 million

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

Novel coronavirus infections have hit the 1 million mark after "near exponential growth" that's reached "almost every country," World Health Organization Director-General Tedros Adhanom Ghebreyesus said Thursday.

The big picture: The global death toll exceeded 50,000 on Thursday, per Johns Hopkins data. Italy has reported nearly 14,000 deaths. Governments around the world have introduced public health and economic measures to try and curb the impact of the virus.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 6 p.m. ET: 1,007,997 — Total deaths: 52,771 — Total recoveries: 210,055Map.
  2. U.S.: Total confirmed cases as of 6 p.m. ET: 236,339 — Total deaths: 5,648 — Total recoveries: 8,861Map.
  3. 2020 update: The Democratic National Committee said its July convention will be postponed until August because of the coronavirus.
  4. Jobs latest: The coronavirus unemployment numbers are like a natural disaster hitting every state
  5. Public health latest: FDA allows blood donations from gay men after 3-month waiting period, citing "urgent need."
  6. U.S.S. Theodore Roosevelt: Navy removes captain of aircraft carrier who sounded alarm about coronavirus.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Judge declines to delay Wisconsin April 7 primary, extends absentee deadline

Photo: Darren Hauck/Getty Images

A federal judge on Thursday declined to delay Wisconsin's April 7 primary election, saying he doesn't have the authority to do so.

Why it matters: Wisconsin is the only state scheduled to vote next Tuesday that has not yet delayed its primary.