Earnings call can be defined as a conference call. It is commonly between the management of a company. The company we are talking about here is the public company. Aside from the management of the company, earnings call also involves some parties such as the investors, the analysts, and also the media. The main purpose of the earnings call is to discuss the results of the financial during a period of time such as a quarter or a fiscal year. It does not matter if whether the company has earnings or not, earnings call can still be held.
Usually, the earnings report comes before the earnings call. This earnings report comsists of the summary of the information on the performance of financial for some period. Some of earnings calls are phone recordings, some of them are the persentation on the website after the actual call, so all of th investors who could not log-in to the call can access the information.
As one of the biggest entertainment company in the industry of the United States, Netflix always lauches the eranings call every period. Netflix earnings call is one of the most waited things for the investors, analysts, and for public in general. It is such the combination of the Netflix’s report of earnings and the conference call in order to discuss the results.
The latest Netflix earning calls was on April 17th, 2017. It was at 10.00 PM GMT. It is the first quarter of Netflix earnings call in 2017. The coorporate participants include David B. Wells as CFO of Netflix; Reed Hastings as the Founder, Chairman of Board, CEO, and President of Netflix Inc; and Theodore A. Sarandos as the Chief Content Officer of Netflix Inc. Meanwhile, the conference call participants are included Douglas David Mitchelson from USB Investment Bank, the Research Division-MD and the Equity Research Analyst, Media) and Scott W. Davitt from Stifel, Nicolaus & Company, in Incorporated, Research Division–MD. In addition, David B. Wells was the presentator of the Neflix earnings call.
Here are some things from the first quarter of Netflix earnings call which was held in April.
In the first one, Mitchelson asked David about the number of 100 million and $150. On this question, David answer that the subscriber of Netflix has been grown since the last quarter. In the last quarter, this based in Los Gatos company predicted an increase for the quarter one of 5.2 million subcribers. It would give the 99 million worldwide subscribers in total.
The second point of the Netflix earnings call is about the costs of content and marketing. Last year, the company stated that it would allocate $6 billion in 2017 that can cover the acquisitions and the growth of the company.
The last point that highlight the Netflix earnings call is how much can Reed Hastings hide on the new earnings call format. Netflix said that the interview will be recorded immediately ahead of the release so that the quality of the audio can be improved.