![]() and Canada, where average revenue per member (ARM) is highest at $16.29. These net adds were above the company's expectations, and it expects a roughly similar number of net adds in Q4 "give or take a few million." Usually, a large subscriber add in one quarter signals pull-forward from the next quarter - so we'll see if Netflix's strength can hold up in Q4.īy region, it's worth noting that 1.75 million of these net adds came in the U.S. 8.76 million net-new subscribers joined Netflix in Q3, versus 5.89 million last quarter and 2.41 million in the year-ago Q3. Evidently, consumers are reining in their spending on goods - but in spite of price increases, subscribers are still hanging on to their plans.Īnd new subscribers are signing up in large numbers as well. Note as well that Netflix's guidance for Q4 calls for further continued acceleration in revenue growth to 11% y/y - which is a rarity in this economy where most companies, particularly in the tech sector, have commented on slowing revenue growth driven by macro factors. Revenue grew 8% y/y to $8.54 billion, accelerating sharply over Q3's 2% y/y growth rate. ![]() Netflix Q3 earnings highlights (Netflix Q3 earnings release) Netflix's Q3 results showcased a strong beat in subscriber adds, which is the number-one metric that moves its stock. The recent rally has further steam in 2024, where Netflix has indicated it expects to benefit from a combination of both paid subscriber growth plus pricing tailwinds. The bottom line here: it's a great time to go long on Netflix. Over time, the company could build up more of an experienced business as Disney has. The company is building off its pop-up Netflix Bites cafe experiences to create more physical/offline destinations for Netflix fans, which it is branding as "Netflix House". Due to a combination of strong membership growth, more efficient headcount levels, and more disciplined content spending as outlined above, Netflix is generating record operating profits. We're likely moving toward a near-term future in which the major streaming giants will stop trying to outspend each other on content and focus instead on core franchises.
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