Shulou(Shulou.com)11/24 Report--

Sina Technology News Beijing time on October 19 in the early morning news, the United States video streaming service provider Netflix today announced the company's financial results for the third quarter of fiscal year 2022. The company reported third-quarter revenue of $7.926 billion, up 5.9% from $7.483 billion in the same period last year, net profit of $1.398 billion, down 3.5% from $1.449 billion in the same period last year, and earnings per share of $3.10. compared with $3.19 in the same period last year.

Netflix's third-quarter revenue and earnings per share both beat Wall Street analysts' expectations and the number of new paid subscribers worldwide exceeded expectations, sending its shares up nearly 14 per cent in after-hours trading.

In addition, Netflix announced that it will start cracking down on password sharing next year, choosing to allow people who have been relying on borrowing accounts to watch videos to create their own accounts. The company will also allow people to share their accounts to create sub-accounts to pay for friends or family members to use their accounts.

Main achievements:

For the quarter ended September 30, Netflix's net profit was $1.398 billion, down 3.5% from $1.449 billion a year earlier, and earnings per share were $3.10, compared with $3.19 a year earlier, beating analysts' expectations. On average, 31 analysts had expected Netflix to earn $2.13 a share in the third quarter, according to Yahoo Finance.

Netflix's third-quarter revenue was $7.926 billion, up 5.9% from $7.483 billion in the same period last year and exceeding analysts' expectations. On average, 31 analysts had expected Netflix's third-quarter revenue to reach $7.84 billion, according to Yahoo Finance.

By region, Netflix's third-quarter revenue from streaming services in the United States and Canada was $3.602 billion, compared with $3.258 billion in the same period last year, while revenue from streaming services in Europe, the Middle East and Africa was $2.376 billion, compared with $2.432 billion in the same period last year. Revenue from Latin America was $1.024 billion, compared with $915 million in the same period last year, and revenue from the Asia-Pacific region was $889 million, compared with $834 million in the same period last year.

Netflix's third-quarter operating profit was $1.533 billion, compared with $1.755 billion in the same period last year, and its operating margin was 19.3%, compared with 23.5% in the same period last year.

Without GAAP, Netflix's adjusted EBITDA (net income before interest, tax, depreciation and amortization) was $1.77 billion in the third quarter. For the 12 months ended September 30, 2022, Netflix's adjusted EBITDA was $6.543 billion.

Netflix's net cash from business operations was $557 million in the third quarter, compared with $82 million from business operations in the same period last year, and free cash flow was $472 million, compared with-$106 million in the same period last year. Netflix continues to expect free cash flow for the whole of fiscal year 2022 to reach about $1 billion (fluctuating hundreds of millions of dollars up and down) and to expect a significant increase in free cash flow in fiscal year 2023 (assuming no further significant appreciation of the dollar).

Netflix's third quarter revenue costs were $4.789 billion, compared to $4.207 billion in the same period last year; marketing expenses were $568 million, compared to $636 million in the same period last year; technology and development expenses were $663 million, compared to $564 million in the same period last year; and general and administrative expenses were $373m, compared to $322m in the same period last year.

User data:

The total number of paying users of Netflix's global streaming service reached 223.09 million in the third quarter, up 4.5 per cent from 213.56 million in the same period last year. By region, the number of paying users of streaming services in the United States and Canada was 73.39 million in the third quarter, compared with 74.02 million in the same period last year; 73.53 million in Europe, the Middle East and Africa, compared with 70.5 million in the same period last year; and 39.94 million in Latin America, compared with 3899 in the same period last year. The number of paying users of streaming services in the Asia-Pacific region was 36.23 million, compared with 30.05 million in the same period last year.

The number of paying users of Netflix's new streaming service was 2.41 million in the third quarter, compared with 4.38 million in the same period last year, which exceeded analysts' expectations. Wall Street analysts had on average expected the number of paying users of Netflix's new streaming service to reach 1.09 million in the third quarter, according to data provided by market intelligence agency StreetAccount.

By region, Netflix had 100000 new paying users in the United States and Canada in the third quarter, compared with 70,000 in the same period last year; 570000 in Europe, the Middle East and Africa, compared with 1.8 million in the same period last year; and 310000 in Latin America, compared with 330000 in the same period last year. The number of new paying users in the Asia-Pacific region was 1.43 million, compared with 2.18 million in the same period last year.

In terms of revenue per user, Netflix's average revenue per user from the United States and Canada in the third quarter was $16.37, up 12% from $14.68 in the same period last year, and 12% year-on-year excluding exchange rate changes The average income per user from Europe, the Middle East and Africa was $10.81, down 7% from $11.65 in the same period last year. Excluding exchange rate changes, the average income per user from Latin America was $8.58, up 9% from $7.86 in the same period last year, and 16% excluding exchange rate changes The average revenue per user from the Asia-Pacific region was US $8.34, down 13% from US $9.60 in the same period last year, and down 3% year-on-year, excluding exchange rate changes.

Performance outlook:

Netflix expects revenue of $7.776 billion in the fourth quarter of fiscal 2022, an increase of 0.9% compared with the same period last year, which falls short of analysts' expectations; operating profit will reach $330 million and operating profit margin will reach 4.2%; net profit will reach $136 million and earnings per share will reach $0.36, which also fails to meet analysts' expectations The net increase in the number of paid users of the global streaming service will reach 4.5 million, bringing the total to 227.59 million, a year-on-year increase of 2.6 per cent.

On average, 30 analysts expected Netflix's fourth-quarter revenue to reach $7.97 billion, while 30 analysts expected Netflix's fourth-quarter earnings per share to reach $1.12, according to Yahoo Finance.

Changes in stock prices:

Netflix shares fell $4.24, or 1.73%, to $240.86 in regular trading on the Nasdaq stock market. In after-hours trading as of 06:08 EDT on the 18th (06:08 Beijing time on the 19th), Netflix shares rose 13.86%, or $33.38, to $274.24. In the past 52 weeks, the highest price for Netflix is $700.99 and the lowest price is $162.71.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.