Netflix’s Q1 estimated user surge, CEO said growth or interest rates in the second half of the year

Netflix’s Q1 estimated user surge, CEO said growth or interest rates in the second half of the year
Benefiting from the online entertainment projects brought about by the new coronary pneumonia epidemic, Netflix (Naifei) saw a large increase in users in the first quarter, with a net added value of 15.8 million, far higher than the market forecast of 8.47 million.On April 22, Netflix released its quarterly audited financial report for the first quarter of this year, and the company achieved revenue of 57 in Q1.500 million US dollars, an annual increase of 27.6%, slightly lower than market expectations 57.6.2 billion US dollars; net profit reached 7.USD 0.9 billion, an increase of 106% a year, slightly lower than market expectations7.$ 4.2 billion.After the financial report was issued, Netflix’s after-hours reached an increase of more than 11%, but the final increase narrowed to 0.18%.As of April 22, Netflix expects a rise of 34 this year.08%, far surpassing other Internet companies.In the earnings conference call, Netflix CEO Reed Hastings said that in the first quarter, the user was considered to be ahead of the growth of the whole year ahead, and he expected the third quarter of this yearIn the fourth quarter, Netflix’s membership growth rate will not be as great as last year.Q1 membership increases or advances overdraft in the future. Due to the impact of the new coronary disease, many countries in Europe and the United States have implemented closure orders or home orders, resulting in a substantial increase in users’ time at home.Benefiting from this, Netflix achieved rapid user growth in the first quarter, a surge of 15.8 million in a single quarter, almost a pair expected by Wall Street investors.From the perspective of operators, Netflix found users in North America re-entered the growth track, with a net increase of 230 in the first quarter.70,000, while the net increase in Europe, the Middle East and Africa is 695.60,000, upstream and Asia-Pacific region increased by 2.9 million and 360, respectively.20000.However, Netflix expects to gradually restore control through the epidemic worldwide, and the company ‘s supplementary membership growth will improve in the second quarter. The net value-added of the member is expected to be 7.5 million in the second quarter. Netflix said that this number will be changed to various aspects.Factors, including when users can return to normal life and the progress of the new coronary pneumonia epidemic, etc.Greg Peters, chief product officer of Netflix, said that in January and February of this year, it was found that the size of users has returned to the level before the price increase, but the company has not considered continuing to increase prices at the moment, just want to be extremely focusedGuarantee the company’s services.He also mentioned that the estimated user growth in the first quarter is equivalent to the company’s original goal of one year, so it is found that user growth may occur in the second half of the year.For the second quarter performance expectations, Netflix said the company’s revenue will reach 60.$ 4.8 billion, an annual increase of 22.8%, the net profit will reach 8.The total number of users of the global streaming service is estimated to be 1 billion USD.903.6 billion people, a 10-year increase of 25.6%.The epidemic did not affect the release of this year’s episode, but the epidemic also had a potential impact on Netflix.Affected by the global economic environment, the sharp appreciation of the US dollar in the first quarter caused Netflix ‘s international income to be dragged down. Taking Brazil as an example, the exchange rate change has replaced the growth of local users.In addition, in terms of production, except for a few countries such as South Korea and Iceland, almost all shooting has been stopped globally. Netflix said this is devastating to millions of workers in the TV and film industry, but the companyThis year’s episodes and movies have basically been made, and remote post-production is currently underway around the world. Netflix will definitely not change the release date of each episode of this year. The current concern is next year’s program schedule.Netflix CFO Spencer Neumann said on the conference call that in the past economic recession, people are more willing to stay at home and enjoy family entertainment, which is why in the past few decadesIt is almost stable, and it can even be said to be a bit anti-economic cycle, but the new crown epidemic is a completely different event. No one has experienced a similar situation. It is difficult to judge the impact of the economic recession on the purchasing power of global consumers.He mentioned that the company’s cash flow is currently not affected by the new crown epidemic, but due to the suspension of production, the company will experience an increase in content costs, so this year’s free cash flow is expected to be negative 1 billion US dollars or less, but repeated in 2019It is the peak of Netflix’s annual free cash flow deficit, and through more content substitution, the company maintains a positive free cash flow status.Sauna, Ye Wang Lu Yifu editor Xu Chao proofreading Liu Jun