Netflix delivered a mixed set of results for the last quarter. The company surpassed its own expectations with respect to subscriber growth and added 7.66 million net new subscribers in Q4, higher than its own forecast of 4.5 million additions. The company ended 2022 with 230.75 million worldwide, surpassing its previous target of 227.59 million, implying a 4% subscriber growth. The management sees room for growth and quoted that Netflix accounts for only 8% of TV viewership in the United States, a relatively stagnant market where they are quite well-established. The company followed up Stranger Things with Extraordinary Attorney Woo, a huge success in South Korea and Asia that also developed a sizable cult following in the US. They then went straight into Sea Beast, their biggest animated film, and Purple Hearts and Gray Man, two of their most popular Netflix movies ever. Furthermore, All Quiet on the Western Front became the most nominated non-English film in the history of BAFTAs. As we had predicted, the company’s quality of Originals is improving significantly with time. We remain bullish on their stock and give it a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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