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Netflix posts third-quarter earnings beat, says viewer engagement remains ‘healthy’
The company said the cuts and leadership changes will redirect spending toward content and advertising after engagement growth slowed.
- On Tuesday, Netflix reported third-quarter revenue of $12.87 billion and earnings per share of $0.87, beating Wall Street expectations as membership growth and advertising drove results.
- Recent organizational changes included laying off 1,000 employees and appointing Peter Rice as Chief Content Officer, replacing Bela Bajaria, as average monthly viewing hours per member fell to 49 hours from 66 hours in 2023.
- The company cut its 2026 advertising revenue forecast to $2.7 billion from $3 billion and issued fourth-quarter revenue guidance of $13.4 billion, citing slower-than-expected rollout of certain ad product capabilities.
- Netflix shares fell following the results, and Co-CEO Ted Sarandos said the company will focus on producing quality content to "make us a 'must-have' service."
- Faced with competition from YouTube, which accounted for 14.2% of U.S. TV viewing time in July compared to Netflix's 7.8%, the streaming giant is pivoting toward live events to reclaim viewer attention.
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Netflix loses pace of growth, shares fall - what losses can await streaming giant Netflix for the fourth time in a row predicts a slowdown in revenue growth, and its advertising business is <p>developing more slowly than expected. Since the beginning of the year, the company's shares have lost about a quarter of their value.</p>
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The 10% cut in advertising revenue forecast has triggered the fall of their shares on Wednesday.
Coverage Details
Total News Sources233
Leaning Left34Leaning Right28Center50Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 30%
C 45%
R 25%
Factuality
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