TMTB: NFLX -1% First Take

NFLX -1%: Looks ok. Q2 revs a bit light of expectations but better Q3 guide. Q3 + FY Margin guide a bit light of bogeys. FY Raised

Fairly ho hum print, don’t expect this to change narrative on the stock….

Q2 Revs $11.08 vs street at $11.06B and EPS of 7.19 vs street at 7.08…top line a bit light of bogeys
Q3 Revenue guide 17% in Q3 above bogeys of 15.5% and street at 14.8%, driven by growth in members, pricing, and ad revs.
Q3 Operating margin guide of 31% vs street at 31.35%
FY operating margin guide of 29.5% (30% FXN) vs street at 29.7%, less than buyside at 30%+
FY Revenue Guide $44.8-$45.2B up from $44B

From the letter: