Netflixs revenue in the third quarter was $6.4 billion, up 22.7percent year on year, adding 2.2 million subscribers

category:Internet
 Netflixs revenue in the third quarter was $6.4 billion, up 22.7percent year on year, adding 2.2 million subscribers


Here are the highlights of Netflixs third quarter results:

u2014u2014Netflixs revenue in the third quarter was $6.44 billion, up 22.7% from $5.25 billion in the same period of last year, and exceeded analysts consensus forecast of $6.38 billion;

u2014u2014Netflixs net profit in the third quarter was $79million, up from $665million in the same period last year;

u2014u2014Netflixs third quarter earnings per share were $1.74, up from $1.47 in the same period last year, but far below the average analyst expectation of $2.14;

u2014u2014Netflix added 2.2 million paid subscribers in the third quarter, down from 6.8 million in the same period last year, and also lower than the 3.57 million expected by analysts, with a total of 195 million subscribers.

u2014u2014Netflix expects its subscribers to increase by 6 million in the fourth quarter, but still far below the 8.8 million in the same period in 2019.

This is Netflixs first earnings report since Ted sarandos, a longtime chief content officer, was promoted to co CEO. Netflix warned shareholders last quarter that subscriber growth was starting to slow again after an initial pick-up as a result of global asylum measures.

Novel coronavirus pneumonia is a big surprise, as Netflix said in a letter to shareholders, because the company is now working to cope with the impact of the new crown pneumonia epidemic. The outbreak and its impact continue to make predictions very uncertain, but with the world expected to recover in 2021, we expect our growth to return to a level similar to that before the outbreak, the letter wrote

Subscribers in the Asia Pacific region were the largest contributor to Netflixs pay member growth, accounting for 46% of the global net subscriber growth. We are pleased with the companys progress in the region, particularly with double-digit growth in broadband home penetration in Korea and Japan, Netflix said in the letter

While the epidemic may have accelerated Netflixs user growth, it has also stopped making movies for security reasons. That means the release plan will slow down, although the delay is less obvious for Netflix, because it has too many shows and movies in the pipeline. The company said it had begun to remake its most popular original shows, such as strange things..

At the same time, with the resumption of production, the company said it had in fact completed major filming of more than 50 works since mid March and planned to complete the main shooting of another 150 works by the end of this year. The company also expects the number of original Netflix products to be launched next year will continue to grow year-on-year.

Netflixs free cash flow was positive for the third consecutive quarter, from $2.2 billion in the first nine months of 2020. The company expects free cash flow to turn negative in the fourth quarter, to about $2 billion in 2020, better than previous estimates of a positive breakeven. Netflix expects free cash flow to be negative by $1 billion in 2021, but will eventually break even.

Netflix expects revenue of $6.57 billion in the fourth quarter, while the market is expected to be $6.59 billion; earnings per share in the fourth quarter is expected to be $1.35, and the market is expected to be $0.97; in the fourth quarter, the number of paid users will increase by 6 million, and the market is expected to increase by 6.54 million.

Netflix shares fell nearly 6% after the results were released. The shares fell 1% on Tuesday to close at $525.42. (small)

Source: Qiao JunJing, editor in charge of Netease science and Technology Report_ NBJ11279