00:00Netflix shares take a lay down as the earnings cross the wire here, the headline number.
00:04And we're going to actually start with the second quarter forecast.
00:07That's the current quarter that we're in.
00:08The company guiding below analyst estimates, 78 cents a share on the EPS side.
00:13That street was looking for about 84 cents.
00:15It's also guiding lower on operating margin, 32.6%.
00:19The street estimate on average was for 34.4% there as well.
00:24For the first quarter, the quarter that just passed, the company did actually beat on those
00:28metrics, EPS at $1.23.
00:30That's about double what it was a year before.
00:33Free cash flow coming in at about $5.1 billion.
00:36The street was looking for about $2.7 billion.
00:39And on the revenue side, $12.25 billion of revenue for the current quarter.
00:43The street, Katie, was looking for $12.17.
00:45So a beat for the first quarter, but it looks like guiding below street estimates for the
00:50second quarter.
00:50Netflix co-founder Reed Hastings will leave the board when term ends.
00:54So a little bit of an interesting tidbit there.
00:58When it comes to the board.
00:59But again, as we were just discussing with John Belton, this is a growth stock.
01:03This is an earnings growth story.
01:06And at least for right now, you can see that disappointment coming through, Tim.
01:09Maybe some investors in the past few months wondering how the company would grow without
01:13the addition of Warner Brothers Discovery.
01:15The company saying Warner Brothers would have been a nice accelerant for our strategy, but
01:20only at the right price.
01:21Repeating a refrain that it has said many times in the past.
01:24We have multiple ways to achieve our goals, including producing, licensing, and partnering.
01:28And we're constantly seeking to allocate our resources to the most attractive opportunities
01:33to maximize the value we are delivering to our members.
01:35The landscape we're operating in, they say, is more dynamic than ever.
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