The Clap
Netflix (NASDAQ:NFLX) added 7.66 million new subscribers, significantly more than analysts’ expectations of 4.57 million.
What
Despite the significant increase in subscribers, Netflix recorded an EPS of 12 cents in Q4, less than the expected 45 cents.
In addition, co-CEO Reed Hastings is leaving his post and will become executive chairman, while COO Greg Peters was promoted to co-CEO.
So What
The biggest driver of Netflix’s lower-than-expected EPS was due to a large amount of euro-denominated debt, which increased proportionally to a weakening USD.
Now What
Netflix’s new ad-supported tier has been included in its earnings, although it is unclear how many new subscribers the tier brought.