Netflix (NFLX) is set to report first quarter earnings after the bell on Tuesday as investors eagerly await updates regarding the company’s recently launched ad-supported tier, in addition to its controversial crackdown on password-sharing.
Here’s what Wall Street expects from the streaming giant, according to Bloomberg consensus estimates:
The company previously said it will no longer provide subscriber growth guidance as “revenue is our primary top line metric.” As a result, commentary surrounding its various revenue initiatives will be paramount for analysts and investors.
“We’re still very early in both [advertising video on demand] and paid sharing, but any commentary on conversion, churn and/or adoption of the new offerings is more important to our thesis than 1Q results,” Jefferies wrote in a client note earlier this month.
The bank estimated both initiatives will drive a “reacceleration” towards double digit revenue growth by the end of 2023 and well into 2024, although there…
This article was written by and originally published on finance.yahoo.com