Netflix Will Stop Providing Subscriber Forecasts Starting With Q1 2023

variety.com:

Todd Spangler NY Digital Editor Netflix will no longer share projected subscriber targets in upcoming earnings reports — a closely tracked metric among investors — as the company looks to shift the narrative to its financial performance.

Starting with Netflix’s fourth-quarter 2022 earnings report in January 2023, it will not provide guidance for the next quarter (Q1 of 2023).

The company will continue to provide guidance for revenue, operating income, operating margin, net income, EPS and fully diluted shares outstanding for the following quarter, but not paid membership. Click here to sign up for Variety’s free Strictly Business newsletter covering earnings, financial news, and more. “As discussed in previous letters, we are increasingly focused on revenue as our primary top-line metric,” Netflix said in its Q3 shareholder letter. “This will become particularly important heading into 2023 as we develop new revenue streams like advertising and paid sharing, where membership is just one component of our revenue growth.” Netflix said it will continue to report total streaming subscribers as well as break out regional figures each quarter as part of its earnings release.

The streaming giant announced the change in its guidance reporting with the release of its Q3 earnings, which handily topped Wall Street estimates.