Netflix is scheduled to report first-quarter earnings after the bell on Tuesday, and investors will be paying close attention to subscriber numbers, especially for its ad-supported tier.
While Netflix will no longer provide guidance for subscribers, it will still report how many total user count, in the U.S. and globally, each quarter.
Here’s what Wall Street is expecting, according to analysts surveyed by Refinitiv:
- Earnings per share: $2.86 expected
- Revenue: $8.18 billion expected
A year ago, Netflix had reported its first subscriber loss in a decade, sending its shares on a downward spiral, as well as those of its media peers. The results pushed Netflix and its streaming rivals to focus on profits over subscriber numbers.
Results for the country’s new ad-supported tier will be top of mind. Last November, Netflix unveiled its cheaper tier with commercials, which costs $6.99 a month. The ad-supported tier came shortly after it lost subscribers as streaming competition ramped up.
Co-CEO Ted Sarandos recently said the company is likely to offer multiple ad-supported tiers in the future.
Another focus for Wall Street will be Netflix’s crackdown on password sharing. Late last year, the company said it would begin rolling out measures to have people who have been borrowing other accounts create their own.
The company has said more than 100 million households share accounts, or about 43% of its global user base. That has affected its ability to invest in new content, Netflix has said. Both the ad-supported option and crackdown on password sharing are meant to boost profits.
In February, Netflix outlined password-sharing guidance in four countries: New Zealand, Canada, Portugal and Spain. The company said it would ask users in those countries to set a “primary location” for their accounts, and allow users to establish up to two “sub accounts” for those who don’t live in their home base for extra fees.
The company has yet to provide password-sharing guidance for the U.S., although it is expected to do so this year.