Netflix released its Q1’23 financials yesterday, and at 3.7 % year-over-year revenue growth it is no longer a high growth company. But it had $2.1 billion in postive cash flow, which is a decent amount of change. Especially as all the video streaming contenders are, likely, still bleeding billions of dollars per year.
Some interesting comments were that Netflix’s cheaper plan with ads is making more money than their standard plan, despite being at a lower consumer price. This is similar to what’s been said by Disney+, Hulu and others for their ads plans so maybe not too surprising.
In addition to the strong free cash flow, Netflix operating income reached $1.7 billion instead of $1.6 billion forecasted due to ongoing expense management and timing of hiring and content investment. I think we will hear that combination of actions from a lot of tech companies in the next 3 to 6 months.