Key points:
- Earnings per share beat expectations by 7%.
- Revenue beat expectations by 0.1%.
- Netflix added 8.76 million new subscribers in the third quarter, beating expectations by 62%.
- The company's guidance for the fourth quarter is slightly below expectations.
Netflix reported earnings for the third quarter of 2023, beating analyst expectations. The company reported earnings per share of $3.73, while expectations were $3.49. Revenue was $8.54 billion, while expectations were $8.53 billion.
Netflix's third-quarter earnings came out very strong, beating expectations on both earnings per share and revenue. The company also added 8.76 million new subscribers in the third quarter, beating expectations by a significant margin. This is a positive sign for Netflix, as it shows that the company is still growing and attracting new subscribers. Of course, growth in subscribers is related to the policy of no sharing accounts.
Netflix's guidance for the fourth quarter is slightly below expectations, but this is still a positive sign. The company is forecasting earnings per share of $2.15 and revenue of $8.69 billion, which would be a 10% increase in earnings per share and a 3% increase in revenue from the third quarter.
Overall, Netflix's third-quarter earnings were a strong performance. The company is still growing and attracting new subscribers, and its guidance for the fourth quarter is positive.
Netflix's strong performance in the third quarter is likely due to a number of factors, including:
- The company's strong content library, which includes popular shows and movies such as "Stranger Things", "The Witcher", and "The Crown".
- The company's continued expansion into new markets, such as India and Africa.
- The company's recent efforts to crack down on password sharing, are likely to lead to more paid subscribers.
Netflix's strong performance is likely to be welcomed by investors, as it suggests that the company is still a major player in the streaming market. Netflix's shares are gailing almost 9% in after-market trading which can be seen as a little rebound on US100.
Source: xStation5
