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Good Morning!
Happy Friday! Enjoy your weekend:
👉 Netflix shocks Wall Street
👉 TikTok ramps up spending
👉Proctor & Gamble earnings are in
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NETFLIX: Are You Still Watching?
Netflix had its best start to the year since 2020, gaining 9.33 million new subscribers in the first quarter of 2024, which was far above the expected 4.84 million. This growth, fueled by popular original content and a crackdown on password sharing, helped the company exceed revenue and earnings forecasts.
Source: Netflix
The company announced it will stop reporting quarterly subscriber numbers and revenue per subscriber from the first quarter of 2025, focusing instead on overall sales and profits. After a slowdown in 2021 and 2022, Netflix has rebounded strongly due to stricter account sharing policies, converting many unauthorized users into paying customers. This has significantly increased the company's market value, which has approached record highs again. Netflix reported a 15% increase in revenue to $9.33 billion and net income of $2.33 billion, or $5.28 per share, surpassing analysts' projections.
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TikTok: Ramps Up Spending
TikTok has ramped up its advertising spend to over $4.5 million to fend off a potential U.S. ban, as Congress pushes a bill requiring its parent company ByteDance to sell the app. The ad spend includes over $2.5 million on TV and nearly $900,000 online.
Source: CNBC
The legislation could force ByteDance to divest TikTok within nine months, with an extension possible if progress is shown. The House may vote on this soon, and President Biden supports the bill. In response, TikTok has focused its advertising in key states, particularly where Senate Democrats face tough reelections, spending significantly in states like Pennsylvania. These ads are part of TikTok’s effort to shape discussions in Washington about ByteDance’s ability to protect U.S. user data.
EARNINGS: Procter & Gamble
Procter & Gamble reported mixed quarterly results, still struggling to regain customers after two years of raising prices on products such as Tide detergent and Charmin toilet paper. Although there were no new price increases this quarter, the company's prices remain 3% higher than last year, CFO Andre Schulten noted. Despite these challenges, P&G upgraded its forecast for full-year earnings growth.
Source: Design Rush
For the fiscal third quarter, net income rose to $3.75 billion from $3.4 billion a year earlier, with a slight 1% increase in net sales to $20.41 billion. Sales volumes were flat overall, however there were gains in some sectors like beauty and grooming. The company faced softer demand in China and fewer promotions in the Middle East due to geopolitical tensions.
Headlines You Need To Know: 🎙
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Source: Carbon Finance
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