Netflix Misses Subscriber And Earnings Forecasts In Q3 Setback

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Netflix fell short of its own guidance for earnings per share and subscriber growth in the third quarter

Global subscribers totaled 195.15 million by September 30, up from 192.95 million as of June 30. The company had predicted it would add 2.6 million new subscribers, so the growth of 2.2 million was well short and the smallest of any quarter in years after a spectacular surge earlier this year amid COVID-19.Revenue of $6.4 billion met analysts’ expectations, and exceeded the company’s internal guidance by $100 million.

Management also warned that the first two quarters of 2021 are likely to be down compared with the meteoric gains of the same periods in 2020. “We continue to view quarter-to-quarter fluctuations in paid net adds as not that meaningful in the context of the long run adoption of internet entertainment, which we believe is still early and should provide us with many years of strong future growth as we continue to improve our service,” the letter emphasized.

 

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