"We don't think we're anywhere near a margin ceiling. We've got a long runway of margin growth," Netflix CFO Spencer Neumann said on the company's third-quarter earnings call on Wednesday.
"We have a very scalable business model," Neumann said. "It's a global network at scale that has, in many ways, not been seen with legacy entertainment networks. So we think we've got a long way to go." Netflix said its operating margins have more room to run after the company beat earnings expectations on both the top and bottom lines and reported a surge in subscribers.
"While we mostly paused price increases as we rolled out paid sharing, our overall approach remains the same — a range of prices and plans to meet a wide range of needs, and as we deliver more value to our members, we occasionally ask them to pay a bit more," the company said in its shareholder letter.
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