1 Key Item to Watch When Netflix Reports Earnings
As always, Netflix (NASDAQ: NFLX) is among the first wave of companies to schedule its earnings report for the calendar quarter. The streaming-TV specialist recently announced it will report its second-quarter financial results on July 19 at 3 p.m. PT.
While the typical metrics investors watch when the company announces its results (subscriber additions, revenue growth, and operating margin) will be important, there's one item in the report that may receive extra attention: any commentary from management about the company's plans to enter the digital advertising space. Many analysts and investors are hoping connected-TV (CTV) ads will become Netflix's next major growth driver.
Shares of Netflix have cratered this year, falling nearly 70% year to date. Investors have been disappointed in the company's stalling user growth. In the first quarter of 2022, the company's total paid subscribers were about flat sequentially. Even worse, management guided for second-quarter paid subscribers to decrease about 2 million compared to Q1.
Source Fool.com
