- Netflix (NASDAQ:NFLX) jumps to a new all-time high after posting Q4 numbers.
- The company reported 1.98M domestic streaming additions vs. 1.29M consensus and 1.25M guidance.
- International streaming additions were up to 6.36M to top the 5.05M expected by both analysts and the company.
- Total streamings adds were 8.33M for the quarter vs. 6.34M consensus.
- Q4 U.S. streaming contribution margin fell 140 bps Q/Q to 34.4% vs. 34.4% expected. The international contribution margin rate was 8.7% vs. 7.4% expected.
- The company's operating margin improved 50 bps Q/Q to 7.5%.
- Netflix on cash flow: "In Q4, free cash flow amounted to -$524 million, bringing full year 2017 FCF to -$2.0 billion, at the lower end of the -$2.0 to -$2.5 billion range we had previously indicated. This was largely due to the timing of content payments, which will now occur in 2018."
- Netflix on content spending: "With greater than expected member growth (resulting in more revenue), we now plan to spend $7.5-$8.0 billion on content on a P&L basis in 2018."
- Looking ahead, Netflix expects Q1 domestic streaming adds of 1.45M and international streaming additions of 4.90M.
- Source: Netflix Q4 shareholder letter
- Upcoming: Netflix earnings call webcast
- NFLX +9.42% AH to $249.00.
- Now read: Escape Velocity: Is Netflix Set For An Earnings Rally?
Original article