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Los Angeles– Netflix The company will report fourth-quarter earnings after the market close on Tuesday.
Wall Street will be closely watching details such as the company’s ad-supported business model, recent live sports events and the continued impact of the password crackdown on user numbers.
After all, this is expected to be the last time Netflix reports user data to shareholders as it plans to focus on revenue and other financial metrics as performance indicators.
Here’s what Wall Street expected for the company’s most recent quarter:
- Earnings per share: $4.20, according to LSEG
- income: $10.11 billion, according to LSEG
- Paid membership: According to StreetAccount, 290.9 million
“Netflix has established an almost insurmountable lead in the streaming wars,” Wedbush analyst Alicia Reese wrote in a recent research note. “While competitors try to copy its business model, Netflix can retain its moat. While Netflix has successfully cracked down on password sharing, we expect its ad tier to drive revenue growth over the next few years, with the introduction of the ad tier having limited churn, easing the pressure to add new subscribers over the past six years. At least 30 million accounts were converted to the advertising tier during the month.
Reese noted that Netflix is positioned to accelerate revenue from its ad tier as it continues to add more live events, improve ad targeting and forge new partnerships. She said it is expected that Netflix’s advertising layer will become its main growth driver by 2026.
This is a breaking news story. Please check back for updates.
