News & Analysis

Netflix beats Q3 expectations

20 October 2021 By Klavs Valters

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Netflix reported its third-quarter financial results after the closing bell on Tuesday, delivering solid numbers and beating Wall Street analyst predictions.

The online streaming service reported earnings per share at $3.19 per share vs. $2.56 a share expected. The total revenue was $7.48 billion (up 16.3% from the same time last year) in the third-quarter of 2021, in line with analyst estimates.

Global paid net subscriber additions grew by 4.4 million in Q3, above analyst forecast of 3.84 million.

”After a lighter-than-normal content slate in Q1 and Q2 due to COVID-related production delays in 2020, we are seeing the positive effects of a stronger slate in the second half of the year. In Q3, we grew revenue 16% year over year to $7.5 billion, while operating income rose 33% vs. the prior year quarter to $1.8 billion. We added 4.4m paid net adds (vs. 2.2m in Q3’20) to end the quarter with 214m paid memberships. We’re very excited to finish the year with what we expect to be our strongest Q4 content offering yet, which shows up as bigger content expense and lower operating margins sequentially.”

”Assuming no new Covid waves or unforeseen events that result in large scale production shutdowns, we currently anticipate a more normalized content slate in 2022, with a greater number of originals in 2022 vs. 2021 and a release schedule that is more balanced over the course of the year, as compared to 2021,” Netflix said in a letter to shareholders.

Netflix chart (1Y)

Shares of Netflix were trading lower in the after market trading hours following the latest financial report, down by 1.11% at $639 a share. The share price reached its all time high of $646 last month and is up by 20.40% in the past year.

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Sources: Netlfix, Refinitiv, TradingView

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