LIVE: Netflix reports Q4 earnings as Wall Street examines the impact of rivals like Disney Plus
- Netflix reports earnings for its fourth quarter on Jan. 21 after the markets close.
- Wall Street analysts are divided, but mostly optimistic, that the company can reassert its streaming dominance during the period, when new rivals like Disney Plus and Apple TV Plus launched and threatened Netflix's standing.
- Analysts were encouraged by a content slate that included hit shows like "The Witcher" and Oscar-nominated films like "The Irishman."
- Netflix forecasted that it would add 7.6 million paid net subscribers during the fourth quarter, including 600,000 in the US and 7 million internationally. Bloomberg consensus is slightly rosier.
- Business Insider will be updating this post as the earnings results are released.
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Netflix posts earnings for its fourth quarter on Tuesday, after the markets close.
Wall Street analysts are divided, but mostly optimistic, that the company can reassert its streaming dominance during the period, when new rivals like Disney Plus and Apple TV Plus launched and threatened Netflix's standing.
Analysts will be closely watching Netflix's US subscriber growth, which it missed its targets for during the past two quarters, as a sign of how the service is faring against Disney Plus.
Netflix forecasted that it would add 7.6 million paid net subscribers during the fourth quarter, including 600,000 in the US and 7 million internationally.
Bloomberg consensus is slightly rosier, with 602,000 subscribers in the US and 7.15 million globally.
Some analysts were encouraged by Netflix's parade of apparent hits that were released during the quarter, including series like "The Witcher" and the second season of "You." The company also debuted Oscar contenders "The Irishman," "Marriage Story," and "Two Popes," during the period, and popcorn flicks like "6 Underground."
However, internationally, there were signs of weakness. Data from mobile analytics firm Similar Web, which tracks usage of Netflix's mobile app in 30 countries around the world, showed a drop in estimated daily-active users in key markets like Brazil and India.
Netflix's fourth-quarter report will look a little different than filings past. Starting this period, Netflix is breaking out streaming membership and revenue by geographic region, rather than "domestic" and "international" streaming. It will report on four regions, including the US and Canada; Europe, the Middle East, and Africa; Latin America; and Asia-Pacific. Netflix re-reported in December the last 11 quarters in the new format.
The company will also only offer guidance for global paid memberships moving forward, and won't forecast regional subscribers.
Business Insider will be updating this post as Netflix's earnings results are released.
Here are the key numbers in Netflix's Q4 earnings:
- Q4 revenue: Wall Street estimates $5.45 billion and Netflix forecasts $5.4 billion.
- Q4 earnings per share (GAAP): Wall Street estimates $0.53 and Netflix forecasts $0.51.
- Q4 total paid subscriber growth (paid net additions): Wall Street estimates of 7.65 million and Netflix forecasts 7.6 million.
- For the US, Wall Street estimates 602,250 and Netflix forecasts 600,000.
- Internationally, Wall Street estimates 7.15 million and Netflix forecasts 7 million.
