Netflix, Inc. NasdaqGS:NFLX

FQ2 2023 Earnings Call Transcripts

Wednesday, July 19, 2023 10:00 PM GMT

S&P Global Market Intelligence Estimates

-FQ2 2023-

-FQ3 2023-

-FY 2023-

-FY 2024-

CONSENSUS

ACTUAL

SURPRISE

CONSENSUS

GUIDANCE

CONSENSUS

CONSENSUS

EPS

2.86

3.29

15.04

3.23

3.52

11.30

14.72

Normalized

Revenue (mm)

8290.48

8187.30

(1.24 %)

8677.38

8520.00

34071.47

38439.98

Currency: USD

Consensus as of

Jul-19-2023 2:21 PM GMT

- EPS NORMALIZED -

CONSENSUS

ACTUAL

SURPRISE

FQ3 2022

2.16

3.10

43.52 %

FQ4 2022

0.51

0.12

(76.47 %)

FQ1 2023

2.86

2.88

0.70 %

FQ2 2023

2.86

3.29

15.04 %

COPYRIGHT © 2023 S&P Global Market Intelligence, a division of S&P Global Inc. All rights reserved

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Contents

Table of Contents

Call Participants

3

Presentation

4

Question and Answer

5

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NETFLIX, INC. FQ2 2023 EARNINGS CALL - PRELIMINARY COPY | JUL 19, 2023

Call Participants

EXECUTIVES

Gregory K. Peters

Co-CEO, President & Director

Spencer Wang

Vice President of Finance,

Corporate Development & Investor

Relations

Spencer Adam Neumann

Chief Financial Officer

Theodore A. Sarandos

Co-CEO, President & Director

ANALYSTS

Douglas Till Anmuth

JPMorgan Chase & Co, Research

Division

Jessica Jean Reif Ehrlich Cohen

BofA Securities, Research Division

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NETFLIX, INC. FQ2 2023 EARNINGS CALL - PRELIMINARY COPY | JUL 19, 2023

Presentation

Spencer Wang

Vice President of Finance, Corporate Development & Investor Relations

Hello, and welcome to the Netflix Q2 2023 Earnings Interview. I'm Spencer Wang, VP of Finance, IR and Corporate Development.

Joining me today are Co-CEOs, Ted Sarandos; and Greg Peters; and CFO, Spence Neumann. Our interviewer this quarter is Jessica Reif Ehrlich from Bank of America.

As a reminder, we'll be making forward-looking statements, and actual results may vary. Jessica, I'll now turn over the call to you for your first question.

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NETFLIX, INC. FQ2 2023 EARNINGS CALL - PRELIMINARY COPY | JUL 19, 2023

Question and Answer

Jessica Jean Reif Ehrlich Cohen

BofA Securities, Research Division

Well, let's start with the top of the not 1, but 2 strikes. Can you give us your views of how this affects your business on a practical basis? How far out does your original content take you? And how much of the content spend do you think gets pushed from '23 -- from this year into next year?

Theodore A. Sarandos

Co-CEO, President & Director

Thanks, Jessica. Good afternoon. Thanks for the questions. Let me start by making something absolutely clear. These strikes, this strike is not an outcome that we wanted. We make deals all the time. We are constantly at the table negotiating with writers, with directors, with actors and producers with everyone across the industry and we very much hoped to reach an agreement by now.

So I also want to say, if I may, on a personal level, I was raised in a union household. My dad was a member of IBEW Local 640 as a local -- he was a union electrician. And I remember his local because that union was very much a part of our lives when I was growing up.

And I also remember on more than 1 occasion, my dad being out on strike. And I remember that because it takes an enormous pole on your family financially and emotionally. So you should know that nobody here, nobody within ANPTP and I'm sure nobody had SAG or nobody at the WGA took any of this lightly. But we've got a lot of work to do. There are a handful of complicated issues. We're super committed

to getting to an agreement as soon as possible. 1 that's equitable and 1 that enables the industry and everybody in it to move forward into the future.

Jessica Jean Reif Ehrlich Cohen

BofA Securities, Research Division

And in terms of content, how much original content -- do you have to run out, like at a certain point in time, you probably will.

Theodore A. Sarandos

Co-CEO, President & Director

Well, look, we've put some of our upcoming content in the letter. We've said in the last call, we produced heavily across all kinds of content TV, film, unscripted, scripted, the local domestic, English, non-English, all those things. And they're all true. But us besides the point. The real point is we need to get to this strike to a conclusion so that we can all move forward.

Jessica Jean Reif Ehrlich Cohen

BofA Securities, Research Division

Absolutely. So let's move on to password sharing, which is something everyone on the call wants to hear about. Could you just give us a kind of like State of the Union, what progress have you made to date? And when will the rollout be complete?

Gregory K. Peters

Co-CEO, President & Director

Yes, Jessica. So we've worked really hard, iteratively over many months and really even over 1.5 years to find an approach that we thought was a good product experience for most consumers that gave them the information that they needed to make clear decisions that included features that they wanted. So think about transferring our profile and your viewing history to a new account, easy ways to manage your devices and account access, being able to purchase that extra membership for a loved one. So we've done a good job at building those features, we think, but also in a way that balances those user considerations

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Netflix Inc. published this content on 20 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2023 02:51:03 UTC.