Overview
- Netflix, which disclosed Thursday in its Q1 report that co-founder Reed Hastings will not seek re-election, said he will focus on philanthropy after his board term ends in June.
- First-quarter revenue reached $12.25 billion and earnings were $1.23 per share, figures lifted by a $2.8 billion termination fee from the collapsed Warner Bros. deal that will not recur.
- The company guided Q2 revenue to about $12.57 billion and EPS to 78 cents, both below Wall Street forecasts, and the stock fell roughly 8% to 10% as investors reacted.
- Leaders outlined growth moves that include an ad business tracking toward $3 billion this year, video podcasts, live events like Japan’s World Baseball Classic, and a vertical mobile discovery feed slated for late April.
- Co-CEOs Ted Sarandos and Greg Peters said Hastings supported the Warner bid and that his exit is unrelated, while the breakup fee lifted free cash flow to $5.1 billion in Q1 and a full-year goal of about $12.5 billion.