Netflix breaks through its slump and reports substantial gains in sales and shares, reporting a gain of more than 2.41 million subscribers.
On Tuesday, the streaming giant said its shares rose by more than 14% as it revealed better-than-expected statistics.
The figure is more than twice what the company expected during the past questers. Furthermore, Netflix continues its promise to crack down on password sharing. According to the streaming behemoth, its agents will begin operations next year.
Netflix reported the following:
- EPS: $3.10 vs. $2.13 per share, according to Refinitiv.
- Revenue: $7.93 billion vs. $7.837 billion, according to Refinitiv survey.
- Expected global paid net subscribers: Addition of 2.41 million subscribers vs. addition of 1.09 million subscribers, according to StreetAccount estimates.
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Netflix subscribers
Netflix saw substantial growth in the Asia-Pacific region. To date, the area comprises around 1.43 million subscribers. Meanwhile, the US-Canada region lagged behind, with only an addition of 100,000 subscribers for this quarter.
“We’re still not growing as fast as we’d like. We are building momentum, we are pleased with our progress, but we know we still have a lot more work to do,” said Netflix’s chief financial officer, Spencer Neumann.
Next year, Netflix expects more subscribers to avail of its offerings, projecting around 4.5 million subscribers during the first quarter. Moreover, the company projects a $7.8 billion revenue from the added figure. They said the strengthening dollar would have influenced the increase.
Programs offered by Netflix
Netflix delved into ad-inclusive offers. For now, the streaming platform’s lowest offer is six dollars. However, Netflix announced it would offer lower ad-supported plans this November. Netflix remains very optimistic that with the show it offers, viewers will continue to avail of its services. The advertising venture is one of the factors bringing in the figures for the company.
According to the company, they hope for increased membership volumes as the year ends. Netflix adds that as per yearly reports, the last three months of the company often experience a peak in viewership, as well as new material added to its slate.
“After a challenging first half, we believe we’re on a path to reaccelerate growth. The key is pleasing members. It’s why we’ve always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us,” said the company.
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Report to shareholders
In a report directed to shareholders, Netflix revealed several things, including:
- Revenue, operating income and membership slightly exceeded our forecast in Q3’22.
- We had big hits across TV and film in Q3 – launching some of our most-watched series and films of all time, including:
- Monster: The Jeffrey Dahmer Story, Stranger Things S4, Extraordinary Attorney Woo,
- The Gray Man and Purple Hearts
- Our lower-priced ad-supported plan launches in 12 countries in November – just six months after our initial announcement. Our existing plans remain ad-free.
- Netflix has higher engagement than any other streamer – with room for growth:
- In the UK, Netflix accounts for 8.2% of video viewing, 2.3x Amazon and 2.7x Disney+ ;
- In the US, Netflix accounts for 7.6% of TV time, 2.6x Amazon and 1.4x Disney + Hulu + Hulu Live.
- Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard – we estimate they are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix’s $5 to $6 billion annual operating profit.
Photo Credit: Netflix
Source: CNBC
