NETFLIX Reports Record High Revenues and Profits in Second Quarter of FY2023

☀️Earnings Overview

On June 30, 2023, NETFLIX ($NASDAQ:NFLX) reported its second quarter FY2023 earnings results showing total revenue of USD 8.2 billion – a 2.8% year-over-year increase – and net income of USD 1.5 billion, up 3.5% from the previous year.

Market Price

On Wednesday, NETFLIX stock opened at $476.9 and closed at $477.6, up by 0.6% from prior closing price of 474.8. This was due to the company’s announcement that it had reported record high revenues and profits in the second quarter of FY2023. This is the first time that NETFLIX has achieved such high levels of revenues and profits since its inception. The company attributed the success to its strategy of focusing on its original content, as well as its successful marketing and pricing strategies. Moreover, the company also highlighted its strong customer base which continues to grow with each passing quarter.

The company also noted that it has been able to increase its market share despite increased competition from other streaming services. Given this report, NETFLIX is well positioned to continue to expand its reach and strengthen its market position in the streaming industry. Investors are also likely to remain optimistic about the company’s prospects in the future, given the impressive financial performance in the second quarter of FY2023. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Netflix. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Netflix. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Netflix. More…

Key Ratios Snapshot

Some of the financial key ratios for Netflix are shown below. More…

Analysis

We at GoodWhale have conducted an analysis of NETFLIX‘s wellbeing and our Star Chart shows that NETFLIX has an intermediate health score of 5/10 with regard to its cashflows and debt, indicating that the company might be able to sustain future operations in times of crisis. From our analysis, NETFLIX is classified as ‘rhino’, a type of company we have concluded has achieved moderate revenue or earnings growth. With the company being strong in growth, profitability, and relatively weak in asset, dividend, investors looking to invest in this company should keep these strengths and weaknesses in mind. Overall, we believe that NETFLIX is in a position to not only survive in times of crisis but also continue to grow and expand its business. More…

Peers

It has a library of movies and TV shows to choose from. Disney, Paramount, and FuboTV are all streaming services that offer movies and TV shows. Netflix is the most popular of these services.

– The Walt Disney Co ($NYSE:DIS)

The Walt Disney Company has a market capitalization of 186.02 billion as of 2022 and a return on equity of 4.53%. The company operates in the media and entertainment industry and is known for its film and television productions, as well as its theme parks and resorts. Disney also owns and operates a number of cable and broadcast television networks, including ABC, ESPN, and the Disney Channel.

– Paramount Global ($NASDAQ:PARA)

Paramount Global has a market cap of 12.6B as of 2022. The company’s ROE is 18.54%. Paramount Global is a leading provider of global logistics and transportation services. The company offers a full range of logistics and transportation services, including air and ocean freight forwarding, warehousing, trucking, and custom clearance. Paramount Global also offers a wide range of value-added services, such as product sourcing, order management, and supply chain management.

– FuboTV Inc ($NYSE:FUBO)

FuboTV Inc is a television streaming company that offers over 100 live channels. As of 2022, the company has a market capitalization of 681.89 million dollars and a return on equity of -43.27%. The company’s primary service is providing live streaming of television content, however, they also offer a cloud DVR service and a social TV platform. The company is headquartered in New York City.

Summary

NETFLIX‘s second quarter earnings results for FY2023 were strong, with total revenue reaching USD 8.2 billion and net income increasing by 3.5% to USD 1.5 billion. This represents a 2.8% year-on-year increase in revenue, and suggests that NETFLIX is continuing to perform well despite the challenging economic conditions brought about by the COVID-19 pandemic. With a healthy balance sheet and an expanding customer base, investors should remain confident in NETFLIX’s prospects over the coming years.