Earnings Reports for the Last Quarter of 2020: Netflix

  Netflix Inc. closed the last year with more than 200 million subscribers. Consumers, who could not leave their homes due to the pandemic, increased demand. The growing demand in the online streaming market has caused Netflix to differentiate itself significantly from its competitors. Netflix announced on Tuesday that they started serving more than 8.5 million new subscribers on a net basis in the fourth quarter, a gain beyond estimates for this period. The company's subscriber base has nearly doubled since the third quarter of 2017, when it exceeded 100 million paying customers.

It would not be an exaggeration to say that the epidemic caused Netflix to grow.

When consumers complied with curfews to limit the risk of infection, they reduced various leisure activities such as dining out, holidays, theaters and concerts. It would not be an exaggeration to say that the epidemic caused Netflix to grow. The company announced that it increased its revenue from $ 5.45 billion in the same period of the previous year to 6.64 billion and exceeded analysts' estimates. However, the profit fell from $ 587 million the previous year to $ 542 million.(Down to $ 1.19 per share) FactSet analysts' share forecast was $ 1.36 for the final period of 2020.  

Netflix shares have increased by 11.3 percent in post-Tuesday trading sessions, with an increase of over 48 percent in the last 12 months.

Broadcast giant's strong cards in the quarter included the historical drama "Bridgerton", the mini-series "The Queen's Gambit", the new season of "The Crown" and the George Clooney movie "Midnight Sky". As the Covid-19 pandemic continues to restrict film and television productions, Netflix reported that it currently has more than 500 titles in post production or is ready to release. Last week, Netflix announced that it will release a new movie every week to be effective in 2021.  

The company currently predicts 2021 cash flow to breakeven

Most of the company's growth in 2020 occurred in the first two quarters. The secret to this growth was that Covid-19 inevitably affected daily life around the world. Subscriber earnings declined compared to the same period of the previous year, in an estimate the company had expected. The company currently forecasts 2021 cash flow to breakeven. This is an increase from the break-even point of minus $ 1 billion announced earlier. The company said it plans to hold gross debt between $ 10 and $ 15 billion. Netflix is also considering a share buyback program for shareholders in exchange for cash. In a shareholder letter, it was stated that the company previously repurchased shares from 2007 to 2011. Earnings Reports for the Last Quarter of 2020: Netflix

Source: https://www.wsj.com/

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