Netflix GAAP EPS of $2.88 beats by $0.01, revenue of $8.16B misses by $20M
Netflix press release (NASDAQ:NFLX): Q1 GAAP EPS of $2.88  beats by $0.01.
Revenue of $8.16B (+3.7% Y/Y)  misses by $20M.
With Moodyâs recent upgrade, we achieved investment grade status. Netflix is the leading streaming service based on engagement, revenue and profit and we are working to build on that in â23, by seeking to expand operating margin to 18%-20% and to generate at least +$3.5B of free cash flow (up from our prior expectation of at least $3.0B of FCF).

In Q1, we launched paid sharing in four countries and are pleased with the results. We are planning on a broad rollout, including in the US, in Q2.
Given current healthy performance and trajectory of our per-member advertising economics, particularly in the US, weâre upgrading our ads experience with more streams and improved video quality to attract a broader range of consumers.

For Q2â23, we forecast revenue of $8.2B, up 3% year over year, or 6% growth on an F/X neutral basis. Weâre pleased with the most recent launches of paid sharing, and while we could have launched broadly in Q1, we found opportunities to improve the experience for members. Operating income of $1.6B (roughly flat year over year) and an operating margin of 19% vs. 20% in Q2â22.
We expect constant currency revenue growth to accelerate over the course of the second half of 2023 as we continue to improve our service, more broadly roll out paid sharing in Q2 and grow our advertising business. We also expect year over year operating profit growth and operating margin expansion for the full year (assuming no material swings in F/X). Weâre still targeting a 2023 operating margin of 18%-20%, based on F/X rates as of January 1, 2023.
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