Netflix posts higher 3Q earnings, solid subscriber growth

Netflix posted sharply higher third-quarter net Tuesday acknowledgment to a stronger slate of titles, including "Squid Game," the dystopian endurance play from South Korea that the institution says became its biggest-ever TV show.

The company has ramped up production, rebounding from pandemic-induced delays successful the archetypal fractional of the year. It's besides looking beyond movies and TV and said it plans to money "new maturation opportunities" specified arsenic video games, which are being tested successful immoderate markets.

"It remains precise aboriginal days for this inaugural and, similar different contented categories we've expanded into, we program to effort antithetic types of games, larn from our members and amended our crippled library," the institution said.

And arsenic it faces saturation successful the U.S. market, Netflix is focusing connected increasing its planetary subscriber numbers. For instance, it launched a escaped mobile program successful Kenya, successful the hopes it volition get much radical successful the state to motion up for paid memberships.

In all, Netflix said its subscriber basal grew 9% from a twelvemonth earlier, to 213.6 million, surpassing its ain projections.

The summation came astir adjacent arsenic Netflix's subscriber maturation softened "a small bit" successful Latin America aft the institution accrued prices successful Brazil, Spencer Neumann, Netflix's chief fiscal officer, said during a league telephone with a Wall Street analyst.

"It's a short-term slowdown successful growth, but bully for our concern and we're already continuing to turn done it," helium said.

Netflix earned $1.45 billion, oregon $3.19 per share, successful the latest quarter. That's up from $789.9 cardinal oregon $1.79 per share, a twelvemonth earlier.

Revenue grew 16% to $7.48 cardinal from $6.44 billion.

Analysts, connected average, were expecting net of $2.56 per stock connected gross of $7.48 billion, according to a canvass by FactSet.

Shares of the Los Gatos, California-based institution fell astir 1% successful after-hours trading.

Netflix besides said Tuesday that aboriginal this twelvemonth it volition alteration however it reports its viewership metrics. Instead of however galore accounts ticker its titles, it volition study the fig of hours viewed. Netflix said this is simply a "'slightly amended indicator of the wide occurrence of our titles and subordinate satisfaction."

"It besides matches however extracurricular services measurement TV viewing and gives due recognition to rewatching," Netflix said.

For the existent quarter, Netflix said it expects to adhd 8.5 cardinal nett subscribers.

The institution made nary notation successful its net quality merchandise oregon telephone of the fallout surrounding a caller Dave Chapelle special, which premiered earlier this period aft the 3rd 4th ended.

Netflix said Friday that it had fired an worker for disclosing confidential fiscal accusation astir what it paid for the Chappelle's drama peculiar "The Closer," which employees and advocacy groups condemned arsenic being transphobic and harmful to transgender people.

The employee, who wasn't named, shared "confidential, commercially delicate accusation extracurricular the company," a Netflix connection said.

The media watchdog radical GLAAD said that "anti-LGBTQ content" violates Netflix's argumentation to cull programs that incite hatred oregon violence.

However, Netflix co-CEO Ted Sarandos told managers successful an interior memo that the amusement doesn't transverse "the enactment connected hate" and volition stay connected the streaming service.

Transgender employees and their allies readying to signifier a walkout Wednesday successful protest.

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