Netflix Soars Despite Slashing Domestic Subscriber Outlook & Record Cash-Burn
By Tyler Durden
Forget the negative cash-flow, forget the ongoing and rising cost of content, and forget the fact that Netflix slashed its domestic subscriber growth expectations; buy-the-f##king-record-high because earnings and revenues met expectations but international subscriber growth soared.
Summary:
- *NETFLIX 4Q INTL NET STREAMING ADDS 5.12M, EST. 3.78M
- *NETFLIX SEES 1Q INTL NET STREAMING ADDS 3.7M, EST. 3.5M
- Q4 EPS (GAAP): $0.15, to Wall Street forecasts of $0.13, which were inline with Netflix guidance of $0.13.
- Q4 Revenue: $2.48 billion, to Wall Street estimates of $2.47 billion, up 36% year-over-year.
And then there's this…
Slashing domestic subscriber growth expectations…
- *NETFLIX SEES 1Q DOMESTIC NET STREAMING ADDS 1.5M, EST. 1.72M
And the only chart that really matters…
Record Cash burn…
Q4 free cash flow totaled -$639 million vs. -$276 million last Q4 and -$506 million in Q3’16. The sequential increase was largely due to the timing of content payments, including our growing slate of self-produced originals. Producing more owned content creates some lumpiness in our working capital needs. We expect our FCF to be around -$2 billion in 2017 vs. -$1.7 billion in 2016, with FCF loss improving sequentially in Q1’17.
And it's set to get worse…
- *NETFLIX SEES FCF AROUND -$2B IN 2017
Source: Netflix Soars Despite Slashing Domestic Subscriber Outlook & Record Cash-Burn
