What happened: Netflix released its Q1 2023 earnings after market close on Tuesday, reporting mixed results. The streaming giant earned $8.16B in revenue, up 3.7% YoY. Net income was $1.3B, or $2.88 per share, down from $1.6B, or $3.53 per share, reported in Q1 2022. The company also announced it would postpone its password-sharing crackdown in the U.S. Why it matters: Netflix originally planned to roll out its new password-sharing guidelines in the first quarter but now plans to implement the new rules in the U.S. in the second quarter. Netflix said it saw an impact in subscriber numbers in international markets where the new password-sharing guidelines were in effect. Netflix added just 1.75 million subscribers in Q1, ending the quarter with 232.5 million paid subscribers globally. Where to see the impact: Netflix shares fell 8% in extended trading following the company’s earnings release. It recovered soon after, trading at around $333 per share by 7 p.m. ET. Netflix subscriber numbers have grown each year but have slowed significantly in recent years. |
