- Netflix (NASDAQ:NFLX) falls in AH trading after a sizable miss with new subscriber growth.
- The company reports 670K domestic streaming additions vs. 1.21M consensus and guidance for 1.20M guidance.
- International streaming additions were up 4.47M during the quarter vs. 5.06M consensus and guidance for 5.0M
- Total streamings adds were 5.15M for the quarter vs. 6.27M consensus. Total memberships were 130.14M at the end of the quarter.
- Q1 U.S. streaming contribution margin increased to 39.1% from 38.3% last quarter. The international contribution margin rate came in at 15.5%.
- The company's operating margin slipped to 11.8% from 12.1% in Q1.
- Netflix on cash and debt: "We continue to anticipate FCF of -$3 to -$4 billion for the full year 2018, which implies that our content cash spending will be weighted to the second half of 2018. During Q2, we completed our latest bond deal, raising $1.9 billion. At the end of Q2, our gross debt balance stood at $8.4 billion and we had a cash balance of $3.9 billion and a $500 million undrawn credit facility. Our debt-to-EV is currently about 5%."
- Looking ahead, Netflix expects Q3 total streaming adds of 5.0M vs. 5.925M consensus, consisting of 4.35M international adds and 650K in the U.S.
- Source: Netflix Q2 shareholder letter
- Upcoming: Netflix earnings call webcast
- NFLX -13.83% AH to $345.00.
- Now read: Netflix: After The Close
Original article