Netflix: A Change in Posture: In this post, I’ll discuss the quarter, the change in reporting, Netflix’s million dollar question, management’s evasiveness on paid sharing and what inning we really might be in, and what seems to be a material change in management’s posture.
April 25, 2024, 5:48 p.m.
Netflix: The Streaming Wars That Never Started: Netflix reported its fourth-quarter results last week. Here’s the shareholder letter. Netflix is back to firing on all cylinders. I won’t rehash the whole quarter, but the company just added 13.1 million paid net adds—the second-most after the first quarter of 2020—grew revenue 12.5% year-over-year (13% in constant currency terms), expanded its operating margin almost 10% year-over-year, generated $1.6 billion of cash, and bought back $2.5 billion
Feb. 2, 2024, 10:15 p.m.
Netflix: Welcoming the Arms Dealers: Netflix reported its third-quarter results on October 18th. Here is the shareholder letter. I thought this was a fantastic start to the letter: Revenue grew 8% year-over-year as reported and in constant currency terms. That was due to the 9% year-over-year gain in average paid memberships and the 1% decrease in ARM (“average revenue per member”), which was the result of growth in lower-ARM countries, limited price increases, and some shift in plan mix.
Nov. 1, 2023, 5:37 p.m.
Carvana: Feedback Loops: On Thursday of last week, Carvana raised its outlook for its second quarter. Ernie spoke at the William Blair conference on the same day to explain. Second-quarter adjusted EBITDA increased from “positive” previously to “above $50 million” while non-GAAP GPU went from “above $5,000” to “above $6,000.” The “majority” of the non-GAAP GPU improvement is the result of selling down a large chunk of the elevated backlog of loans during the quarter. The “majority” language that
June 14, 2023, 4:16 p.m.
