On April 18, 2023, Netflix reported earnings of more than $1 billion. The unexpected erosion, marking Netflix s first quarterly losses in over a decade, necessitated management to launch a low-priced version of its service that includes ads, and begin a crackdown on password sharing that s being imposed in phases. Management has also stopped estimating now how many subscribers it would pick up from one quarter to the next in an effort to force Wall Street to focus more on its financial results rather than the size of its audience.
Netflix's first quarter was down 18% from the same time last year, with $1.3 billion, or $2.88 per share. Even so, the per-share figure was slightly above analysts' forecast, according to factSet. Revenue rose 4% from last year to $8.16 billion, a notch below analyst projections.
After initial tumbling, Netflix's shares were little changed in Tuesday's extended trading after the results came out.
Netflix said the tougher password restrictions would be enforced by the end of March, but that didn't happen in several key markets, including the U.S. Netflix said the password crackdown would be completed by June, a shareholder letter released with its first quarter performance.
Netflix announced in a statement that it will shut down the DVD-by-mail service that it launched a quarter century ago.