Core ideas:
Overall Q2 performance exceeded expectations, and the decline in new users fell short of expectations. In the streaming industry, Netflix's content competitiveness is unquestionable. However, the entire streaming media industry is becoming more and more competitive, and high inflation is suppressing consumer spending, so in this context, as the highest-paying streaming platform, it still faces the risk of losing users in the short term. Looking at it now, Netflix still needs to find a better way to monetize. The price increase won't work this year, and the advertising business will have to wait until next year to gain strength. It is recommended that everyone keep watching.
Incident review:
Netflix (NFLX.O) released its 22Q2 earnings report, which exceeded market expectations. Q2 revenue of US$7.87 billion, YoY +8.6%; operating profit of US$1,578 billion, a decrease of 14.58%; diluted EPS of US$3.46, YoY +16.5%.
Performance analysis:
1. Affected by user bottlenecks, high inflation and compression of consumer spending, the company's revenue and profitability continued to decline, but overall performance exceeded market expectations
The company's revenue growth rate continued to decline. 22Q2 had revenue of 7.87 billion US dollars, YoY +8.6%. Excluding the impact of foreign exchange, revenue increased 13%. In terms of profitability, the 22Q2 company's operating profit margin was 19.8%, and the net interest rate was 18.8%, all of which declined significantly from year to year. It is estimated that within a period of time, the company's profitability will still be affected by intense competition, customer acquisition difficulties, and high inflation in the streaming media market. It is estimated that 202...