Netflix Earnings: What Happened with NFLX

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NFLX bushed connected net and matched connected revenue

Published October 19, 2021

Key Takeaways

  • Netflix's planetary paid streaming subscribers bushed analysts' expectations.
  • The fig of planetary paid streaming subscribers represents however Netflix generates astir of its revenue, but it is becoming much hard to pull caller subscribers the much saturated the streaming marketplace becomes.
  • During the 3rd quarter, Netflix acquired Night School Studio, its archetypal video crippled workplace acquisition.
Netflix Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
EPS Beat $3.19 $2.56
Revenue Match $7.5B $7.5B
Global Paid Streaming Subscribers Beat 213.6M 212.9M

Source: Predictions based connected analysts' statement from Visible Alpha

Netflix (NFLX) Financial Results: Analysis

Netflix, Inc. (NFLX) reported Q3 FY 2021 earnings that bushed expert expectations. Earnings per share (EPS) exceeded statement estimates, rising 83.3% compared to the year-ago quarter. Revenue matched expert forecasts, up 16.3% twelvemonth implicit twelvemonth (YOY). Global paid streaming subscribers, which Netflix refers to arsenic "global streaming paid memberships," came successful astatine 213.6 cardinal for the quarter, supra analysts' expectations. The company's shares roseate astir 5% successful after-market trading. Over the past year, Netflix's shares person provided a total return of 29.9%, supra the S&P 500's total return of 16.7%.

NFLX Global Paid Streaming Subscribers

Netflix's planetary paid streaming subscribers roseate 9.4% YOY, the 2nd slowest gait of maturation successful astatine slightest 19 quarters. Global paid streaming subscribers correspond the fig of planetary users that person signed up and paid for a subscription to person streaming services. A halfway diagnostic of Netflix's strategy is to turn its streaming rank concern globally, arsenic it is the company's main root of revenue. Netflix precocious surpassed the 200 cardinal people successful full planetary paid streaming subscribers astatine the extremity of FY 2020.

Attracting caller subscribers is becoming ever much hard amid an progressively competitory situation that includes rivals similar Apple, Inc.'s (AAPL) Apple TV+, The Walt Disney Company's (DIS) Disney+, Amazon.com, Inc.'s (AMZN) Amazon Prime Video, and AT&T Inc.'s (T) HBO Max. Netflix has started to task into different amusement offerings amid the saturation of the video streaming market. During the 3rd quarter, the institution acquired its archetypal video crippled studio, Night School Studio, which makes a fig of critically acclaimed games specified arsenic OXENFREE.

NFLX Guidance

Netflix provided forecasts for EPS, revenue, and planetary paid streaming subscribers for Q4 FY 2021. The institution expects EPS of $0.80, which would beryllium down 32.8% YOY. Revenue is expected to emergence 16.1% YOY to $7.7 billion. Global paid streaming subscribers are forecast to turn 9.0% to astir 222.1 million.

Netflix's adjacent net study (for Q4 FY 2021) is estimated to beryllium released connected Jan. 17, 2022.

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  1. Netflix Inc. "Q321 Shareholder Letter," Page 1. Accessed Oct. 19, 2021.

  2. Visible Alpha. "Financial Data." Accessed Oct. 19, 2021.

  3. TradingView. "Price Chart: NFLX and S&P 500." Accessed Oct. 19, 2021.

  4. Netflix Inc. "Form 10-K for the fiscal twelvemonth ended December 31, 2020," Page 21. Accessed Oct. 19, 2021.

  5. Netflix Inc. "Form 10-K for the fiscal twelvemonth ended December 31, 2020," Page 1. Accessed Oct. 19, 2021.

  6. Reuters. "Netflix buys archetypal video crippled studio, rolls retired mobile games." Accessed Oct. 19, 2021.

  7. Netflix Inc. "Q321 Shareholder Letter," Page 4. Accessed Oct. 19, 2021.

  8. Yahoo! Finance. "Earnings Calendar: NFLX." Accessed Oct. 19, 2021.

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