1 00:00:00,300 --> 00:00:02,900 Okay, so Netflix should be posting earnings. 2 00:00:02,900 --> 00:00:05,500 Literally any minute. Now this is completely live. 3 00:00:06,100 --> 00:00:09,300 Let's go ahead and see if they have it on CNBC here and I said 4 00:00:09,300 --> 00:00:10,800 our expert. Julie abortion is going through 5 00:00:10,800 --> 00:00:11,600 this. We're going to have all the 6 00:00:11,600 --> 00:00:14,300 analysis on the other side and you can see it looks to be an 7 00:00:14,300 --> 00:00:18,800 initial move higher in the OT. But what what do you have any % 8 00:00:18,800 --> 00:00:21,800 9% want to hear? All right, the stock is moving 9 00:00:21,800 --> 00:00:24,800 sounds. This this freshness C 4 million 10 00:00:24,800 --> 00:00:27,700 subs for enforcing order. It's got to be good, we see her 11 00:00:27,700 --> 00:00:29,900 down the ads here they priced it below. 12 00:00:30,100 --> 00:00:33,200 Many pluses, lower add tear. And so what we're looking for 13 00:00:33,200 --> 00:00:38,300 is, are we bouncing around a lot 4% to 10%, anticipated estimates 14 00:00:38,300 --> 00:00:42,100 around what, that ad tears potentially going to cancel. 15 00:00:42,900 --> 00:00:45,000 If we look at where the valuation, is those Scott? 16 00:00:45,000 --> 00:00:48,200 We think that it's I don't see a postcode area that really is 17 00:00:48,200 --> 00:00:51,400 coincident with five percent Revenue growth which is what 18 00:00:51,400 --> 00:00:52,500 we're looking for on a long-term basis. 19 00:00:52,500 --> 00:00:56,400 Yeah, you see this stock really pop and higher Julia. 20 00:00:56,800 --> 00:00:58,100 Do I have this number? Right to? 21 00:00:58,100 --> 00:01:00,800 They do 2.4 million Subs in The third quarter. 22 00:01:01,400 --> 00:01:03,000 Yeah, so that was the key thing here. 23 00:01:03,000 --> 00:01:05,900 Netflix beating on the top and bottom line, but before I get to 24 00:01:05,900 --> 00:01:08,800 the earnings and revenue numbers, we need to look at the 25 00:01:08,800 --> 00:01:12,100 paid, net additions, the company, adding 2.4 million 26 00:01:12,300 --> 00:01:14,900 streaming paid net, additions as versus expectations. 27 00:01:14,900 --> 00:01:17,300 That the addition of about 1 million, they had been guiding 28 00:01:17,300 --> 00:01:20,700 21 million the guidance. Also better than anticipated 29 00:01:20,700 --> 00:01:24,900 Netflix guiding to the addition of four and a half million paid 30 00:01:24,900 --> 00:01:27,000 subscribers in the fourth quarter analysts have been 31 00:01:27,000 --> 00:01:29,900 looking for around four million so better than expected. 32 00:01:30,100 --> 00:01:31,900 As well. And the company beating 33 00:01:31,900 --> 00:01:34,500 estimates on the top and bottom line with earnings of three 34 00:01:34,500 --> 00:01:39,100 dollars and ten cents versus the 213 estimated and revenues of 35 00:01:39,100 --> 00:01:40,400 seven. Point nine, three billion, a 36 00:01:40,400 --> 00:01:43,400 hair ahead of the seven point eight four billion estimated. 37 00:01:43,400 --> 00:01:46,800 We see the stock is up about 8% on that news. 38 00:01:46,800 --> 00:01:49,600 So really want to dig in here to this report and figure out what 39 00:01:49,600 --> 00:01:52,100 those factors are. That are causing a rebound, 40 00:01:52,300 --> 00:01:55,800 okay? So Netflix doubled, the amount 41 00:01:55,800 --> 00:01:57,800 of projected subscribers, it looks like. 42 00:01:58,500 --> 00:01:59,900 Let's go ahead and look at the article. 43 00:02:00,000 --> 00:02:03,900 Are they finally have it posted? Like she says the the earnings 44 00:02:03,900 --> 00:02:06,400 per share came in as a beat and to me this is actually something 45 00:02:06,400 --> 00:02:08,600 I do. Pay attention to three dollars 46 00:02:08,600 --> 00:02:12,600 and ten cents to $2.13 revenue was a little bit of a beat the 47 00:02:12,600 --> 00:02:15,400 most important metric again. The one that would have crushed 48 00:02:15,400 --> 00:02:19,300 this talk is if Netflix came in and lost subscribers it would 49 00:02:19,300 --> 00:02:22,900 have just been a total fail. I think it would have been a 20% 50 00:02:22,900 --> 00:02:27,400 drop expected Global paid subscribers an additional one 51 00:02:27,400 --> 00:02:29,900 point zero nine million subscribers according to the 52 00:02:30,100 --> 00:02:34,600 Street account but it says here, they gained 2 point 4, 1 million 53 00:02:34,600 --> 00:02:38,200 subscribers. So they Crush their subscriber 54 00:02:38,200 --> 00:02:39,900 estimate. Thank you. 55 00:02:39,900 --> 00:02:43,700 Netflix for finally doing what I've been saying to do set, 56 00:02:43,700 --> 00:02:47,400 expectations, low, and crush it. Now, instead of hearing all the 57 00:02:47,400 --> 00:02:50,500 analysis from CNBC, I want to jump into the actual earnings 58 00:02:50,500 --> 00:02:52,400 report. This is the one reported just 59 00:02:52,400 --> 00:02:55,800 today, October 18th, released just a few minutes ago, fellow 60 00:02:55,800 --> 00:02:58,500 shareholders Revenue, operating income and membership slightly 61 00:02:58,500 --> 00:03:01,900 exceeded our for Cast in Q3 of 2022. 62 00:03:02,200 --> 00:03:06,300 We had big hits across TV and film, and Q3 launching some of 63 00:03:06,300 --> 00:03:09,100 our most watched series and films of all time, including 64 00:03:09,500 --> 00:03:11,400 monster the Jeffrey Dahmer story. 65 00:03:11,900 --> 00:03:13,700 That one looked really disturbing actually didn't watch 66 00:03:13,700 --> 00:03:16,800 that one because the subject matter is just as really 67 00:03:16,800 --> 00:03:19,200 disturbing stuff stranger things season. 68 00:03:19,200 --> 00:03:21,500 For I watched that one. I thought it was phenomenal. 69 00:03:21,800 --> 00:03:26,200 Extraordinary attorney Wu, The Gray Man and purple hearts the 70 00:03:26,200 --> 00:03:29,200 lower price ad-supported plan launches in 12 countries in 71 00:03:29,200 --> 00:03:31,100 November. I think is absolutely 72 00:03:31,100 --> 00:03:33,300 incredible. They're getting this out, this 73 00:03:33,300 --> 00:03:35,600 fast, I think, that's incredible. 74 00:03:35,600 --> 00:03:37,800 They're about to do that. Just six months. 75 00:03:37,800 --> 00:03:41,300 After our initial announcement, our existing plans remain 76 00:03:41,400 --> 00:03:45,400 ad-free Netflix has higher engagement than any other 77 00:03:45,400 --> 00:03:49,500 streamer with room for growth in the UK Netflix accounts, for 8.2 78 00:03:49,500 --> 00:03:53,400 percent of video viewing 2.3 times, Amazon and 2.7 times 79 00:03:53,400 --> 00:03:58,600 Disney Disney Plus in the u.s. Netflix accounts for 7.6% of TV 80 00:03:58,600 --> 00:04:05,300 time. 2.6 times Amazon and 1.4 times Disney and Hulu and who 81 00:04:05,300 --> 00:04:08,100 live. So all of those combined its 1.4 82 00:04:08,100 --> 00:04:11,900 times, our competitors are investing heavily to drive 83 00:04:11,900 --> 00:04:15,200 subscribers and engagement, but building, a large successful 84 00:04:15,200 --> 00:04:18,399 streaming, business is hard. We estimate they are all losing 85 00:04:18,399 --> 00:04:23,500 money with a combined 2022. Operating losses of well above 86 00:04:23,500 --> 00:04:27,900 10 billion versus Netflix. 5 to 6 billion, annual operating 87 00:04:27,900 --> 00:04:29,800 profit. This is something that net 88 00:04:30,000 --> 00:04:32,000 Experience, don't really look at that often. 89 00:04:32,700 --> 00:04:35,000 These other companies that are growing their streaming 90 00:04:35,000 --> 00:04:38,600 businesses are doing it by cannibalizing, a pre-existing 91 00:04:38,600 --> 00:04:40,800 business. So if you look at Disney, it's 92 00:04:40,800 --> 00:04:42,300 true, they're growing Disney plus. 93 00:04:42,300 --> 00:04:44,600 And I think that's great. It's true, they're growing Hulu, 94 00:04:44,900 --> 00:04:48,200 but they are shedding a cable TV business, it's losing 95 00:04:48,200 --> 00:04:50,700 subscribers every day. That's why Disney's ibadah 96 00:04:50,700 --> 00:04:52,900 remains flat, even though they're seeing growth in another 97 00:04:52,900 --> 00:04:55,600 part of their business. Meanwhile, the Disney plus 98 00:04:55,600 --> 00:04:59,200 business is losing money. They're hoping it will be even 99 00:04:59,200 --> 00:05:03,800 break, even Ian and 2025 Netflix is already their operating 100 00:05:03,800 --> 00:05:07,300 profits of five to six billion dollars while the rest of the 101 00:05:07,308 --> 00:05:09,900 industry is losing money. So, another thing I really like 102 00:05:09,900 --> 00:05:13,100 about it, Netflix is growth, doesn't come at the expense of 103 00:05:13,100 --> 00:05:16,500 any part of their business, after a challenging first half, 104 00:05:16,500 --> 00:05:19,200 we believe we're on a path for re accelerated growth. 105 00:05:19,500 --> 00:05:23,100 The key is pleasing members, it's why we've always focused on 106 00:05:23,100 --> 00:05:26,500 winning the competition. Reviewing every day, when our 107 00:05:26,500 --> 00:05:29,500 series and movies, Exciter members, they tell their friends 108 00:05:29,700 --> 00:05:32,100 and More people watch join and stay with us. 109 00:05:32,400 --> 00:05:35,100 So we have some numbers here and there's some of these that are 110 00:05:35,200 --> 00:05:37,400 more important than others. Let me go ahead and highlight 111 00:05:37,400 --> 00:05:40,400 some of them here. The first thing I notice is 112 00:05:40,400 --> 00:05:45,000 right here if I'm reading this correctly their Global streaming 113 00:05:45,000 --> 00:05:50,200 paid members right we have to thirteen to twenty one to twenty 114 00:05:50,200 --> 00:05:53,100 one point six this is them losing subscribers from 1/4 to 115 00:05:53,100 --> 00:05:56,300 the next not good news and then they lost even more. 116 00:05:56,600 --> 00:06:00,300 Really bad news, the exit from Russia, the the big Covid. 117 00:06:00,300 --> 00:06:03,100 Boom wearing off. Then they have this corner right 118 00:06:03,100 --> 00:06:04,400 here. This is a current quarter where 119 00:06:04,400 --> 00:06:07,800 they just gained. Two point, two point four, two 120 00:06:07,800 --> 00:06:12,200 point, four one, they're projecting a gain, a four-point, 121 00:06:12,200 --> 00:06:17,200 50 million subscribers from this quarter to next quarter, that 122 00:06:17,200 --> 00:06:20,800 seems very aggressive 4 million subscriber gain from one corner 123 00:06:20,800 --> 00:06:24,000 to the next. I like to see that they're 124 00:06:24,000 --> 00:06:27,300 confident that growth is remaining but the sets up the 125 00:06:27,300 --> 00:06:29,600 same problem. I wish that Netflix would again 126 00:06:30,000 --> 00:06:32,400 I have give conservative estimates and beat him like they 127 00:06:32,400 --> 00:06:35,300 did this last quarter. Dublin, maybe they are, maybe 128 00:06:35,300 --> 00:06:37,600 they're really going to get 8 million subscribers, but 129 00:06:37,600 --> 00:06:41,000 projecting 4.5 million is a lot especially when growth has 130 00:06:41,000 --> 00:06:44,600 slowed down. If this is true, Netflix is now 131 00:06:44,600 --> 00:06:46,900 a growth company again, if they're growing four and a half 132 00:06:46,900 --> 00:06:50,500 million subscribers and 1/4 even though it's a seasonal thing, if 133 00:06:50,500 --> 00:06:53,000 they're growing again, millions of subscribers every quarter, 134 00:06:53,000 --> 00:06:55,700 they are a growth company. Again they're moving out of that 135 00:06:55,700 --> 00:06:58,000 X growth Purgatory that they've been in. 136 00:06:58,700 --> 00:07:02,100 Let's go ahead and move on. This is the Q3 results 137 00:07:02,100 --> 00:07:03,700 highlights. They do this in every single 138 00:07:03,800 --> 00:07:06,600 shareholder. Letter are six percent 139 00:07:06,600 --> 00:07:09,400 year-over-year, Revenue growth and Q3 was driven by a 5% 140 00:07:09,400 --> 00:07:13,800 increase in the average, paid members and a 1% rise in AR M 141 00:07:13,900 --> 00:07:16,100 average. Revenue per member excluding the 142 00:07:16,100 --> 00:07:20,400 impact of Foreign Exchange revenue and arm grew 13% in 143 00:07:20,400 --> 00:07:23,100 eight percent year. Over year respectively, this 144 00:07:23,100 --> 00:07:25,800 sequential decline of Revenue was entirely due to f x. 145 00:07:26,300 --> 00:07:29,700 So, 100% of it, doing the fornix, Due to Foreign Exchange 146 00:07:29,700 --> 00:07:32,500 Netflix is a global company. When the currency they're 147 00:07:32,500 --> 00:07:36,100 getting outside of the u.s. is worth less that hurts their that 148 00:07:36,100 --> 00:07:39,300 hurts their bottom line. So the FX exchange factors that 149 00:07:39,300 --> 00:07:44,100 in we under forecasted paid, net additions, which totaled 2.4 150 00:07:44,100 --> 00:07:47,200 million, aren't we? Yeah, we under forecasted them. 151 00:07:47,200 --> 00:07:50,300 That's a good thing. In my opinion, which total 2.4 152 00:07:50,300 --> 00:07:54,100 million versus are 1 million forecast and compared to 4.4 153 00:07:54,100 --> 00:07:58,100 million a year ago. This quarter In Asia, Pacific 154 00:07:58,300 --> 00:08:03,100 Asia, Pacific Revenue grew. 19%, excluding FX as an average paid 155 00:08:03,100 --> 00:08:06,000 members Rose 23% year over year. This is, I think the place 156 00:08:06,000 --> 00:08:07,300 they're getting the most growth right now. 157 00:08:07,300 --> 00:08:11,700 Asia-pacific, excluding FX partially driven by lower arm 158 00:08:11,700 --> 00:08:14,900 and India's somewhat offset by higher arm and Australia and 159 00:08:14,900 --> 00:08:17,600 Korea. We added 1.4 million paid 160 00:08:17,600 --> 00:08:21,300 members in the region, then they have emea, which is Europe, 161 00:08:21,300 --> 00:08:27,400 Middle East, and Africa, the revenue, grew 13%, and 7% 162 00:08:27,400 --> 00:08:30,400 respectively, paid net additions, totaled point, six 163 00:08:30,400 --> 00:08:33,200 million versus 1.8 million, and the year-ago quarter. 164 00:08:33,600 --> 00:08:36,700 So they're growing at a slower rate than they did last year, 165 00:08:36,700 --> 00:08:39,200 but they're still growing nonetheless, and keep in mind, 166 00:08:39,200 --> 00:08:40,400 last year, things are a little bit. 167 00:08:40,400 --> 00:08:42,700 Wonky, a lot of companies did really well, because of the 168 00:08:42,700 --> 00:08:46,000 whole supply and demand shifts that happen in Latin America, 169 00:08:46,000 --> 00:08:50,000 Revenue increased 19% year over year supported by average 170 00:08:50,000 --> 00:08:53,300 revenue per member growth of 16. Percent versus the year-ago 171 00:08:53,500 --> 00:08:56,600 quarter excluding FX, we added Point 3. 172 00:08:56,700 --> 00:08:59,700 Million paid memberships in line with our membership growth and 173 00:08:59,700 --> 00:09:02,200 Q3 2021. They're growing slower than I'd 174 00:09:02,200 --> 00:09:05,500 like to see in Latin America point three members per per 175 00:09:05,500 --> 00:09:08,100 quarter is not a lot, but they're still growing there. 176 00:09:08,100 --> 00:09:10,400 Nonetheless. And then United States and 177 00:09:10,400 --> 00:09:12,800 Canada are most penetrated Market. 178 00:09:13,200 --> 00:09:16,300 The average revenue per member and revenue grew by 12%. 179 00:09:16,300 --> 00:09:21,700 And 11% respectively excluding FX paid net ads, total, 2.1 180 00:09:21,700 --> 00:09:24,000 million. So they basically kept the same 181 00:09:24,000 --> 00:09:27,900 out of members grew 100,000 barely any Change the keep in 182 00:09:27,900 --> 00:09:30,300 mind, they are saturated in the US. 183 00:09:30,300 --> 00:09:32,800 That's where they saying. Hey guys, we know that you've 184 00:09:32,800 --> 00:09:35,800 been sharing your parents account for the past 10 years. 185 00:09:36,500 --> 00:09:38,200 It's time to start paying a little bit. 186 00:09:38,200 --> 00:09:40,200 You can get off your parents account and start paying, It's 187 00:09:40,200 --> 00:09:42,800 upsetting a lot of people. But that's the truth, they're 188 00:09:43,000 --> 00:09:45,300 saying, we've maxed out our Market here. 189 00:09:45,300 --> 00:09:46,900 We're going to start charging for individuals. 190 00:09:47,800 --> 00:09:49,400 That's another little growth path. 191 00:09:50,400 --> 00:09:53,600 Q4 forecast as a reminder, the quarterly guidance, we provide 192 00:09:53,600 --> 00:09:56,100 is our actual internal internal forecast. 193 00:09:56,100 --> 00:09:59,700 As the time we report, the appreciation of the US dollar 194 00:09:59,700 --> 00:10:03,300 remains a significant headwind for us and other US based 195 00:10:03,300 --> 00:10:07,300 multinationals in general for Q4 2022. 196 00:10:07,900 --> 00:10:11,000 We're expecting revenue of seven point eight billion. 197 00:10:11,300 --> 00:10:14,400 With the sequential decline entirely due to the continued 198 00:10:14,400 --> 00:10:17,300 strength of the u.s. dollar versus other currencies. 199 00:10:17,800 --> 00:10:21,200 So they saying it's going to be a sequential And but it's 200 00:10:21,200 --> 00:10:24,700 entirely to blame for FX issues. Not because our business is 201 00:10:24,700 --> 00:10:28,700 actually taking in less lesser amounts of Revenue on a constant 202 00:10:28,700 --> 00:10:31,700 currency basis, this equates to nine percent year-over-year 203 00:10:31,700 --> 00:10:34,700 Revenue growth so they're still growing and top-line revenue. 204 00:10:35,000 --> 00:10:39,100 Our Revenue growth forecast is driven by our expectation. 205 00:10:39,200 --> 00:10:43,300 For 4.5 million paid net ads, verse eight point three million 206 00:10:43,300 --> 00:10:47,600 in Q4 of 2021, and ERM growth of six percent year-over-year 207 00:10:47,600 --> 00:10:50,100 excluding FX. I like what I see. 208 00:10:50,200 --> 00:10:51,500 I see here. I have to be honest, as a 209 00:10:51,508 --> 00:10:54,300 Netflix shareholder. I'm always worried about how the 210 00:10:54,308 --> 00:10:57,100 stocks going to do, but not really the stock as much as the 211 00:10:57,100 --> 00:11:01,300 actual business. Now we have on qual trim, this 212 00:11:01,300 --> 00:11:03,700 is a website that I use for Patron members. 213 00:11:03,700 --> 00:11:05,600 You get access to it. It's included as part of the 214 00:11:05,600 --> 00:11:09,900 patreon along with hundreds of exclusive episodes and a Discord 215 00:11:09,900 --> 00:11:11,400 Community with thousands of members. 216 00:11:11,400 --> 00:11:13,200 If you haven't tried it out, try it out. 217 00:11:13,200 --> 00:11:14,900 There's a link in the pin comment below. 218 00:11:15,200 --> 00:11:18,000 It has a free trial, but quatrain is a website that gives 219 00:11:18,000 --> 00:11:20,100 us data visualization. So we can see the status 220 00:11:20,200 --> 00:11:24,700 Reported right here on it is, has a note and this is updated 221 00:11:24,700 --> 00:11:27,100 by the minute. Netflix Shares are trading 222 00:11:27,100 --> 00:11:28,800 higher. After the company reported 223 00:11:28,800 --> 00:11:31,900 better than expected, Q3 results and reporter Global streaming 224 00:11:31,900 --> 00:11:35,300 paid net, additions of 2.4 million Global streaming paid 225 00:11:35,300 --> 00:11:37,600 members, grew 4.5 percent year over year. 226 00:11:38,100 --> 00:11:40,400 So, that's a little note to give you an explanation of why the 227 00:11:40,400 --> 00:11:44,000 stock is trading up. Now, we also get the data in 228 00:11:44,000 --> 00:11:46,300 very quickly. So we already have this latest 229 00:11:46,300 --> 00:11:49,300 earnings report in to call trim right after the earnings. 230 00:11:49,600 --> 00:11:51,300 Let's go ahead and Take a look at how these numbers look 231 00:11:51,300 --> 00:11:53,900 visualized. Their revenue actually went 232 00:11:53,900 --> 00:11:58,000 down, sequentially from quarter to quarter but remember this is 233 00:11:58,000 --> 00:12:01,500 not because they're taking in less money from customers and 234 00:12:01,500 --> 00:12:04,800 the reach in the scale of the company is smaller. 235 00:12:05,100 --> 00:12:08,600 It's simply because of FX, currency problems. 236 00:12:09,000 --> 00:12:12,100 Money outside of the US is worth a lot less than money inside of 237 00:12:12,100 --> 00:12:13,500 the u.s. So now, the revenue they're 238 00:12:13,500 --> 00:12:15,500 getting outside of their, with the exchange rates is worth a 239 00:12:15,500 --> 00:12:18,000 lot less. That's the only reason why on an 240 00:12:18,000 --> 00:12:22,200 fx basis at grew nine. So, you'll see some bears say, 241 00:12:22,200 --> 00:12:24,500 oh the revenues declining for the first time ever. 242 00:12:24,800 --> 00:12:27,500 Ignoring the fact that this isn't the fundamental problem 243 00:12:27,500 --> 00:12:30,600 with Netflix. This is just a temporary issue 244 00:12:30,600 --> 00:12:32,900 with FX. And the same thing is happening 245 00:12:32,900 --> 00:12:35,300 with Microsoft or any other International Company. 246 00:12:36,100 --> 00:12:39,000 My opinion. Not something that is a 247 00:12:39,008 --> 00:12:40,500 fundamental issue for the company. 248 00:12:41,000 --> 00:12:43,400 The ibadah continues to grow at PACE. 249 00:12:43,500 --> 00:12:46,100 We can see the latest quarter in here, five point five, three 250 00:12:46,100 --> 00:12:48,100 billion dollars of ibadah the highest ever. 251 00:12:48,600 --> 00:12:50,000 And then we have the free cash flow. 252 00:12:50,400 --> 00:12:55,000 We have the latest quarter free, cash flow right there. 471 253 00:12:55,000 --> 00:12:59,300 billion dollars. So as of right now, Netflix is 254 00:12:59,300 --> 00:13:01,300 free cash flow. Yield is actually starting to go 255 00:13:01,300 --> 00:13:03,400 up. It's instantly starting to go up 256 00:13:03,400 --> 00:13:06,000 as the company's generating. More free cash flow on a 257 00:13:06,008 --> 00:13:09,400 trailing 12 month basis. We have at the beginning of this 258 00:13:09,400 --> 00:13:13,100 year, the first quarter, they generated 801 million dollars in 259 00:13:13,100 --> 00:13:16,400 free cash, flow Q to 12 million dollars. 260 00:13:16,800 --> 00:13:19,500 So we have eight hundred and thirteen million dollars and 261 00:13:19,500 --> 00:13:27,400 then Q 3. 471 million dollars. So we have what 13 1.3 billion 262 00:13:27,400 --> 00:13:31,400 dollars in free cash flow so far unless they have a heavily - 263 00:13:31,400 --> 00:13:35,100 free cash flow next quarter which may be the case I think 264 00:13:35,100 --> 00:13:38,400 they're going to come in for the full year of 2020 to around a 265 00:13:38,400 --> 00:13:40,100 billion dollars of free cash flow. 266 00:13:40,600 --> 00:13:43,000 So this company actually is generating free cash flow right 267 00:13:43,000 --> 00:13:44,400 now. Something that a lot of these 268 00:13:44,400 --> 00:13:46,700 other streamers are not doing, they're not generating 269 00:13:46,700 --> 00:13:47,900 consistent free. Casual. 270 00:13:48,100 --> 00:13:50,000 Now, Netflix is a free cash flow. 271 00:13:50,100 --> 00:13:53,700 Whoa, positive company, we can look at the latest net income 272 00:13:53,700 --> 00:13:56,600 1.3 billion dollars of net income, the earnings per share 273 00:13:56,600 --> 00:14:02,500 of 3.10 that be expectation by a huge margin by about 30%, we can 274 00:14:02,500 --> 00:14:05,000 look at their cash balance here, their debt went down. 275 00:14:05,100 --> 00:14:07,700 So the company is improving their balance sheet, which is 276 00:14:07,700 --> 00:14:10,100 something I like to see. I don't like companies that are 277 00:14:10,108 --> 00:14:13,500 heavily levered and in debt, but you can see the trend here 278 00:14:13,800 --> 00:14:16,400 quarter after quarter. If I zoom in on this quarter 279 00:14:16,400 --> 00:14:18,400 after quarter, their debt is going down. 280 00:14:18,800 --> 00:14:21,800 Remember the popular bear. From the investors used called 281 00:14:21,800 --> 00:14:24,100 debt flicks. They used to say it was just in 282 00:14:24,300 --> 00:14:27,100 indebted company, it's never going to be able to repay it. 283 00:14:27,400 --> 00:14:31,100 That bear case is crushed. The debt goes down every single 284 00:14:31,100 --> 00:14:33,200 quarter, the cash balance goes up. 285 00:14:33,500 --> 00:14:38,600 Now, their debt is 13.8 billion. Last quarter was 14.2 last 286 00:14:38,600 --> 00:14:41,300 quarter, the cash was 5.8 billion. 287 00:14:41,700 --> 00:14:46,400 Now it's 6.1 debts going down, cash is going up, we can move on 288 00:14:46,400 --> 00:14:47,500 and look at some other things here. 289 00:14:48,600 --> 00:14:52,800 It looks like the company is Still doing share issuance. 290 00:14:52,800 --> 00:14:54,900 So they're not buying back shares aggressively right now, 291 00:14:54,900 --> 00:14:57,300 which is something that I wish they would do to some extent. 292 00:14:57,600 --> 00:15:00,500 Maybe they're investing in these other endeavors, but my, my 293 00:15:00,500 --> 00:15:03,700 thesis are I really don't think that Netflix is going to be a 294 00:15:03,700 --> 00:15:06,300 dilute of company. They're barely issuing more 295 00:15:06,300 --> 00:15:09,700 shares as it is there a point four seven year over year. 296 00:15:10,100 --> 00:15:13,300 So this is barely a dilute of company and if anything they're 297 00:15:13,300 --> 00:15:15,700 going to have the free cash flow to start doing share buyback so 298 00:15:15,700 --> 00:15:17,600 I don't consider this, a long-term problem. 299 00:15:17,700 --> 00:15:20,500 So overall looking at the fundamentals here, I He liked 300 00:15:20,500 --> 00:15:22,600 the direction. Everything is going generating 301 00:15:22,600 --> 00:15:26,400 growing ibadah, the revenues only down because of FX the free 302 00:15:26,400 --> 00:15:28,400 cash flow looks better than expected. 303 00:15:28,600 --> 00:15:31,600 Growing. Net income growing growing, EPS 304 00:15:31,800 --> 00:15:34,600 the cash balance and the debt profiles getting better. 305 00:15:34,600 --> 00:15:36,400 The balance sheets improving for the company. 306 00:15:36,800 --> 00:15:39,000 I think everything looks great. I really like this earnings 307 00:15:39,000 --> 00:15:41,100 report and obviously doubling the amount of expected 308 00:15:41,100 --> 00:15:45,000 subscribers is a very welcome, surprise, looking at the stock 309 00:15:45,000 --> 00:15:48,900 move today of 15.6 percent. Who knows if this will hold, but 310 00:15:48,900 --> 00:15:51,900 my opinion. I think it's I think it's fine. 311 00:15:52,000 --> 00:15:53,700 I don't get too excited about this. 312 00:15:54,000 --> 00:15:56,900 This stock is highly volatile. Again, I'm looking ten years in 313 00:15:56,908 --> 00:16:00,200 the future and right now, my initial reaction, I think things 314 00:16:00,200 --> 00:16:02,900 are back on track for Netflix. So I hope you enjoyed this live 315 00:16:02,900 --> 00:16:04,800 reaction. I'll have more in-depth analysis 316 00:16:04,800 --> 00:16:08,100 later on, as I'm able to dive in to the actual earnings column. 317 00:16:08,100 --> 00:16:10,800 Listen to the questions and read more about the earnings report. 318 00:16:10,900 --> 00:16:13,300 I'll get into the nitty-gritty details, but this is just a 319 00:16:13,308 --> 00:16:14,900 quick reaction. Hope you enjoyed. 320 00:16:15,100 --> 00:16:15,900 See you in the next one.