Earnings Summary: $NFLX

Netflix $NFLX reported Q1 EPS of $3.75, $0.78 better than the analyst estimate of $2.97.

Revenue for the quarter came in at $7.16 billion (+24% YoY) versus the consensus estimate of $7.13 billion.

NFLX key metrics and Q1 2021 performance

Paid subscriber net additions were 3.98 million versus the guidance of 6 million. Total paid memberships (cumulative) were 208 Million (+14% YoY).

Average revenue per membership rose 6% year over year, or 5%, excluding a foreign exchange impact of +$80m.

Net cash generated by operating activities in Q1 was $777 million vs. $260 million in the prior year period.

Free cash flow (FCF) for the quarter was $692 million vs. $162 million in Q1‘20. We are on track for full year 2021 free cash flow to be approximately break even.

As we discussed last quarter, we believe we are very close to being sustainably FCF positive and that we no longer have a need to raise external financing to fund our day-to-day operations.

$NFLX Guidance:

$NFLX sees Q2 subscriber paid net additions of 1 million, versus the consensus of 4.4 million.

$NFLX sees Q2 revenue of $7.3 billion, versus the consensus of $7.39 billion.

$NFLX sees Q2 EPS of $3.16, versus the consensus of $2.68.

Regional breakdown by region for Netflix subscribers

The shareholder letter & conference call transcript are available to review further details.