Netflix third-quarter earnings beat expectations, but fourth-quarter revenue growth is expected to continue slowing
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AT A GLANCE
Netflix's third-quarter earnings beat expectations, but fourth-quarter revenue growth is expected to decline to 11.5%, and its share price at one point fell after the earnings release 7%。
Article
Netflix revenue growth is expected to slow for a fourth consecutive quarter
BlockBeats reported that October 21, Netflix (NFLX.O) reported third-quarter earnings that exceeded Wall Street expectations, but the company expects revenue growth to slow for a fourth consecutive quarter. This outlook could further heighten market concerns about the operating performance of the global leading streaming platform.
Netflix's third-quarter revenue was 12900000000 USD, in line with Wall Street expectations. The company expects fourth-quarter revenue this year to reach 13400000000 USD, below analysts' forecasts. Its revenue growth has slowed from 17.6%in the fourth quarter of last year and is expected to further decline to 11.5%.
Netflix attributed the revenue shortfall to its advertising business, expecting revenue from this business to be 300000000 USD less than originally anticipated. Following the earnings release, Netflix shares at one point fell 7%.
Original link https://m.theblockbeats.info/flash/372832
Key points
01
BlockBeats said that October 21 Netflix's reported third-quarter earnings exceeded Wall Street expectations.
02
Netflix's third-quarter revenue was 12900000000 USD, in line with Wall Street expectations.
03
Netflix expects fourth-quarter revenue this year to reach 13400000000 USD, below analysts' forecasts.
04
The report expects Netflix's revenue growth to decline from 17.6%in the fourth quarter of last year to 11.5%。
05
Netflix attributed the revenue shortfall to its advertising business and expects advertising-business revenue to be 300000000 USD。
06
Following the earnings release, Netflix shares at one point fell 7%。
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Netflix's earnings and revenue performance this quarter met or exceeded market expectations, but its projected revenue for the next quarter is below analysts' forecasts, while advertising revenue is expected to be lower than originally anticipated, indicating that revenue growth may continue to slow.
Why it matters to readers
Successive slowing in revenue growth and lower expectations for the advertising business could heighten market concerns about Netflix's operating performance; the reported intraday share-price decline 7%reflects these concerns.
Beginners may monitor whether Netflix's subsequent actual revenue, revenue growth, and advertising-business revenue meet these projections, and should not draw conclusions based solely on the short-term share-price fluctuations following the earnings release.
Risks and unknowns
The evidence is a BlockBeats retelling and does not include Netflix's earnings report or the original text of an official announcement.
The specific analyst forecast for fourth-quarter revenue is not stated.
The specific reasons why advertising-business revenue is below the original expectation are not stated.
The stock price once fell by 7%, but the evidence does not indicate whether the decline persisted.
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Revenue
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