Netflix NFLX kicked off tech earnings season after the close on Tuesday in a big way, reporting Q1 net subscriber adds of 15.77 million versus expectations of just 8.2 million as stay-at-home directives significantly boosted results. After initially gaining as much as 10% after-hours, gains moderated to flat to slightly down at last check, reflecting high expectations that have driven the stock to record highs lately.
For Q2, Netflix forecast 7.5 million paid streaming adds, well above a consensus of 4.14 million. Q1 revenue of $5.77 billion came in slightly above a $5.75 billion consensus, while EPS of $1.57 was below a $1.64 consensus. Notably with a lot of content production on hold, Netflix also said it now expects 2020 free cash flow of negative $1 billion or better, compared with prior guidance of negative $2.5 billion.
TheStreet's tech columnist, Eric Jhonsa, is analyzing the company's earnings report, as well as the "video interview" with Netflix executives that's scheduled to begin streaming at 6 p.m. ET.