In short: Netflix added 4.38 million paying subscribers in the third quarter of 2021, thanks in large part to stronger software, to complete the three-month period ending September 30 with a total of 213.56 million subscribers. Analysts expected about 3.72 million new submarines.
Revenue for the period was $ 7.48 billion, up 16 percent from $ 6.44 billion in the year-ago quarter. Meanwhile, operating income rose 33 percent, from $ 1.32 billion to $ 1.76 billion. Earnings per share were $ 3.19 versus Wall Street. expectations $ 2.56 and $ 1.74 for the same quarter a year earlier.
Netflix accused its content in the first two quarters is easier than usual on Covid-related production delays in 2020.
However, in September, the pendulum swung with the release of the Squid Game. The South Korean survival drama has captivated audiences around the world, with 142 million families watching the show in its first four weeks. It was ranked # 1 in 94 countries, including the United States.
The streaming giant said demand for show-based consumer goods is high, adding that such goods are on their way to retail Now.
Looking ahead to the fourth quarter, Netflix said it plans to add an additional 8.5 million subscribers and deliver the strongest content offering for the fourth quarter. However, the timeline for the release of the uploaded content will be costly, as operating margins are expected to suffer accordingly.
Netflix shares are down 1.85 percent at the time of writing, likely due to spending expected in the fourth quarter.
Image Credit David Balev