Netflix hangs up on earnings call in favor of video discussion
Instead of the traditional conference call with analysts, the video streaming company will broadcast a video discussion based on questions submitted via e-mail and Twitter.
Netflix's business is Internet video, so it seems appropriate that the company will use the medium to discuss its financial performance later this month.
The video rental and streaming service announced Monday that it will eschew the traditional conference call format with analysts for a live video discussion when it announces its second-quarter financial performance on July 22. The discussion, which will be hosted on Netflix's investor relations page, will be moderated by BTIG analyst Rich Greenfield and CNBC media and entertainment reporter Julia Boorstin.
In addition to the new discussion format, investors will be watching to see whether Netflix can continue the momentum generated in its first quarter, when it slightly beat analyst expectations with adjusted earnings per share of 31 cents on revenue of $1.02 billion. The stock climbed nearly 25 percent in after-hours trading on April 22 when it announced it had signed up more than 3 million streaming members during the first quarter, bringing its total to more than 36 million.
Investors can submit questions for Netflix CEO Reed Hastings and CFO David Wells via the moderators' e-mail and Twitter accounts (rgreenfield@btig.com / @RichBTIG or Julia.boorstin@nbcuni.com / @JBoorstin). Netflix said it will incorporate as many questions into the discussion as time permits.
When queried about its inspiration for the new earnings discussion format, a Netflix spokesperson told CNET that the aim is to add greater transparency to event.
"By having independent third parties run the Q&A, we think it will be more interesting and more informative to investors," Netflix's Joris Evers said.
Will it catch on? Stay tuned.