NASDAQ$NFLX
Netflix, Inc. · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Q2 was better-than-expected on membership growth, and foreign exchange was worse-than-expected, resulting in 9% revenue growth.
Netflix's Q2 revenue grew by 9% year over year (13% constant currency). Global paid net additions were slightly under-forecasted. The company is focused on improving its product, content, and marketing to accelerate revenue and membership growth. They are in a strong financial position with over $30 billion in revenue and growing free cash flow.
- Revenue in Q2 grew 9% year over year (or 13% excluding a -$339 million foreign currency impact).
- APAC revenue grew 23% year over year, excluding F/X.
- EMEA revenue and ARM increased 13% and 6% year over year, respectively, excluding F/X.
- LATAM revenue grew 19% year over year excluding F/X and surpassed the $1 billion quarterly mark for the first time.
Headline financials
Revenue & EPS history
Netflix · Revenue · Quarterly
$7.97B
Revenue by segment
Netflix · $7.93B total across 4 segments · Q2 2022
- UCAN$3.54B+9.4%44.6%
- EMEA$2.46B+2.4%31.0%
- LATAM$1.03B+19.6%13.0%
- APAC$908M+13.6%11.4%
Forward guidance
Q3 revenue growth forecast of 5% translates into 12% year over year revenue growth on a constant currency basis. The US dollar continues to strengthen meaningfully against most currencies at a historic pace, with the Euro recently falling below the US dollar for the first time in two decades, a significant headwind for all multinational US companies.
Tailwinds
- Focus on choice and control for members influences all aspects of Netflix's strategy, creating what they believe to be a significant long term business advantage.
- Netflix's content offering is designed to satisfy a broad range of member tastes by providing an unmatched variety and quality of titles.
- Advertising can enable substantial incremental membership (through lower prices).
- Advertising can enable profit growth (through ad revenues).
- We expect annual positive FCF going forward (with substantial growth in FCF in 2023 vs. 2022) due to our increasing revenue, solid profitability, and the successful multi-year evolution of our content model.
Headwinds
- The US dollar continues to strengthen meaningfully against most currencies at a historic pace, with the Euro recently falling below the US dollar for the first time in two decades, a significant headwind for all multinational US companies.
- Sluggish economic growth
- Impacts of the war in Ukraine
- Connected TV adoption slowing revenue growth
- Account sharing slowing revenue growth
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2022
+1.0%
Avg return
Earnings day
+0.2%
Avg return
5 days after
+2.0%
Avg return
30 days after
47%
34 / 73 earnings
Positive
+50.1%
Q4 2012
Best reaction
-33.1%
Q1 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.3% | -4.6% | -7.9% | |
| Q4 2025 | +2.6% | -13.5% | -19.2% | |
| Q3 2025 | -5.1% | -11.8% | -16.0% | |
| Q2 2025 | -5.1% | -7.6% | -2.8% | |
| Q1 2025 | +1.5% | +7.9% | +22.5% | |
| Q4 2024 | +11.2% | +13.9% | +19.4% | |
| Q3 2024 | +8.8% | +8.9% | +17.4% | |
| Q2 2024 | -2.2% | -0.7% | +4.1% | |
| Q1 2024 | -9.6% | -5.9% | +1.2% | |
| Q4 2023 | +12.2% | +17.4% | +21.2% | |
| Q3 2023 | +12.9% | +14.4% | +31.0% | |
| Q2 2023 | -7.9% | -9.8% | -14.8% | |
| Q1 2023 | -2.9% | -1.4% | +11.6% | |
| Q4 2022 | +5.0% | +11.5% | +6.6% | |
| Q3 2022 | +11.1% | +18.1% | +20.5% | |
| Q2 2022 | +13.4% | +15.5% | +28.4% | |
| Q1 2022 | -33.1% | -36.2% | -45.7% | |
| Q4 2021 | -22.9% | -29.0% | -24.1% | |
| Q3 2021 | -2.0% | +4.2% | +6.9% | |
| Q2 2021 | -3.5% | -3.2% | +2.1% | |
| Q1 2021 | -8.2% | -8.8% | -9.5% | |
| Q4 2020 | +17.7% | +13.5% | +10.1% | |
| Q3 2020 | -7.9% | -8.0% | -8.7% | |
| Q2 2020 | -5.8% | -6.3% | -7.8% | |
| Q1 2020 | -3.7% | -2.9% | -0.3% | |
| Q4 2019 | -4.0% | +4.0% | +13.6% | |
| Q3 2019 | +3.2% | -2.2% | +3.8% | |
| Q2 2019 | -11.1% | -15.1% | -17.3% | |
| Q1 2019 | +1.7% | +3.3% | +3.0% | |
| Q4 2018 | -3.5% | -7.5% | +1.6% | |
| Q3 2018 | +9.5% | -0.1% | -12.9% | |
| Q2 2018 | -4.1% | -8.8% | -17.5% | |
| Q1 2018 | +7.8% | +5.2% | +5.3% | |
| Q4 2017 | +13.5% | +24.6% | +27.5% | |
| Q3 2017 | -0.0% | -2.7% | -3.7% | |
| Q2 2017 | +14.0% | +17.0% | +5.5% | |
| Q1 2017 | +0.3% | -0.0% | +7.2% | |
| Q4 2016 | +4.2% | +3.4% | +7.0% | |
| Q3 2016 | +17.1% | +25.7% | +13.5% | |
| Q2 2016 | -12.8% | -12.7% | -2.1% | |
| Q1 2016 | -15.4% | — | — | |
| Q4 2015 | +3.6% | — | — | |
| Q3 2015 | -7.9% | — | — | |
| Q2 2015 | +15.4% | — | — | |
| Q1 2015 | +17.4% | — | — | |
| Q4 2014 | +21.3% | — | — | |
| Q3 2014 | -19.5% | — | — | |
| Q2 2014 | -2.9% | — | — | |
| Q1 2014 | +7.9% | — | — | |
| Q4 2013 | +18.3% | — | — | |
| Q3 2013 | -3.3% | — | — | |
| Q2 2013 | -5.4% | — | — | |
| Q1 2013 | +32.8% | — | — | |
| Q4 2012 | +50.1% | — | — | |
| Q3 2012 | -9.8% | — | — | |
| Q2 2012 | -24.6% | — | — | |
| Q1 2012 | -17.4% | — | — | |
| Q4 2011 | -5.2% | — | — | |
| Q3 2011 | +6.0% | — | — | |
| Q2 2011 | -0.1% | — | — | |
| Q1 2011 | +1.7% | — | — | |
| Q4 2010 | -6.0% | — | — | |
| Q3 2010 | +7.0% | — | — | |
| Q2 2010 | -2.4% | — | — | |
| Q1 2009 | +1.1% | — | — | |
| Q1 2010 | -0.1% | — | — | |
| Q4 2009 | -3.5% | — | — | |
| Q4 2007 | -3.5% | — | — | |
| Q3 2008 | -1.2% | — | — | |
| Q3 2009 | -1.2% | — | — | |
| Q2 2008 | +3.1% | — | — | |
| Q2 2009 | +3.1% | — | — | |
| Q4 2008 | +3.1% | — | — |
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