Netflix announced this Tuesday that it gained 2,20 million paid subscribers in the third quarter of the year, but the results were below expectations by Wall Street analysts, who anticipated 3,57 million new subscribers to the cable television platform. streaming. Earnings per share also fell short: $ 1,74, when market consensus pointed to $ 2,14.
For Netflix, the slowdown in subscriber growth was expected, after having reported an additional 6,8 million subscribers in the same period last year, due to the context of the socio-economic crisis that we are experiencing, according to the first report and accounts since content director Ted Sarandos was promoted to co-CEO, joining Reed Hastings.
In a letter addressed to shareholders, the technology explains that this slowdown was due to the “record results of the first semester” - at the beginning of the pandemic, consumers joined the platform en masse, because they were in quarantine / confinement and were looking for home entertainment alternatives.
"The state of the pandemic and its impact continue to make projections very uncertain, but as the world hopefully recovers in 2021, we expect our growth to return to levels similar to those prior to Covid-19," explained the multinational , on the missive.
However, Netflix, which saw shares drop more than 5% in trading after hours, exceeded the revenue targets, registering 6,44 billion dollars, which represented a 23% year-on-year increase.
For the fourth quarter, Netflix estimates adding 6 million paid subscriptions - still below the 8,8 million it recorded in the fourth quarter of 2019. Netflix's forecast for next year is that the free cash flow less than $ XNUMX billion by the end of the breakeven.