With the TV and entertainment industry’s anticipating a battle for OTT audiences come November with the launch of potential competitors, Netflix on Wednesday released third-quarter financial results that beat Wall Street expectations.
Among the key highlights:
- Revenue came in at $5.24 billion, up from $4 billion. Analysts polled by Bloomberg expected revenue of $5.25 billion.
- Net income grew to $665.24 million ($1.47 per diluted share), rising from $402.84 million (89 cents). Analysts expected income of $1.05 per share.
- Domestic streaming paid net membership additions came in at 517,000. This is a slow down, as the Street expected 800,000. One year ago, paid net membership additions grew by 998,000.
- International streaming paid net adds are what is fueling Netflix. Paid net membership additions outside the U.S. increased by 6.26 million accounts, compared to growth of 5.07 million one year ago. It’s slightly ahead of what the Street predicted.
Total paid net streaming additions of 6.8 million during the period came in below the company’s expectations for 7.0 million. However, this still represented an all-time third-quarter record for net adds, Bloomberg notes.
Netflix does not release traditional press releases containing financial data and instead shares a SpreadSheet with all of its data.
It can be found here: Netflix Q3 2019 financial statement
In early after-hours trading on Wednesday, investors cheered and bought up shares. As of 4:30pm Eastern, NFLX was up 7.7% from the Closing Bell, to $308.43.