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

Beijing time on October 19 morning news, the United States video streaming service provider Netflix today announced the company's fiscal year 2023 third quarter results. The company reported third-quarter revenue of $8.542 billion, up 7.8% from $7.926 billion in the same period last year; net profit of $1.677 billion, up 20% from $1.398 billion in the same period last year; and earnings per share of $3.73, compared with $3.10 in the same period last year.

Netflix's third-quarter revenue and earnings per share beat Wall Street analysts' expectations, as did the total number of paying users of the global streaming service and the number of new paid subscribers around the world, sending its shares up more than 12 per cent in after-hours trading.

It is worth noting that the number of Netflix's new paid subscribers in the third quarter was the highest since the second quarter of 2020 (10.1 million), when restrictions caused by the COVID-19 epidemic forced people to stay at home.

Main results: Netflix's net profit for the quarter ended September 30 was $1.677 billion, up 20% from $1.398 billion in the same period last year, and earnings per share were $3.73, compared with $3.10 a year earlier, beating analysts' expectations. On average, 34 analysts had expected Netflix to earn $3.49 a share in the third quarter, according to Yahoo Finance.

Netflix's third-quarter revenue was $8.542 billion, up 7.8% from $7.926 billion in the same period last year and slightly exceeding analysts' expectations. On average, 31 analysts had expected Netflix's third-quarter revenue to reach $8.54 billion, according to Yahoo Finance.

By region, Netflix's revenue from streaming services in the United States and Canada was $3.735 billion in the third quarter, compared with $3.602 billion in the same period last year. Revenue from streaming services in Europe, the Middle East and Africa was $2.693 billion, compared with $2.376 billion in the same period last year. Revenue from Latin America was $1.143 billion, compared with $1,024 million in the same period last year. Revenue from the Asia-Pacific region was $948 million, compared with $889 million in the same period last year.

Netflix's third-quarter operating profit was $1.916 billion, compared with $1.533 billion in the same period last year, and its operating margin was 22.4%, compared with 19.3% in the same period last year.

Netflix's net cash from business operations was $1.992 billion in the third quarter, compared with $557 million from business operations in the same period last year, and free cash flow was $1.888 billion, compared with $472 million in the same period last year. Netflix now expects free cash flow to reach about $6.5 billion for the full year of fiscal 2023, up from at least $5 billion previously expected.

Netflix's third quarter revenue costs were $4.931 billion, compared to $4.789 billion in the same period last year; marketing expenses were $559 million, compared to $568 million in the same period last year; technology and development expenses were $657 million, compared to $663 million in the same period last year; and general and administrative expenses were $479m, compared with $373m in the same period last year.

Netflix bought back $2.5 billion worth of shares in the third quarter and expanded its authorized share repurchase program by $10 billion.

Netflix advertising program membership grew by nearly 70% in the third quarter from the previous quarter, and its advertising plan, which charges a monthly fee of $6.99 in the US market, continues to support the growth of its advertising program.

User data: the total number of paying users of Netflix's global streaming service reached 247.15 million in the third quarter, up 10.8% from 223.09 million in the same period last year, exceeding analysts' expectations. Wall Street analysts had on average expected the total number of paying users of Netflix's global streaming service to reach 243.88 million in the third quarter, according to data provided by market intelligence agency StreetAccount.

By region, the number of paying users of streaming services in the United States and Canada was 77.32 million in the third quarter, compared with 73.39 million in the same period last year; 83.76 million in Europe, the Middle East and Africa, compared with 73.53 million in the same period last year; and 43.65 million in Latin America, compared with 3994 in the same period last year. The number of paying users of streaming services in the Asia-Pacific region was 42.43 million, compared with 36.23 million in the same period last year.

Netflix had 8.76 million paying users for its new streaming service in the third quarter, compared with 2.41 million in the same period last year, a figure that exceeded analysts' expectations. Wall Street analysts had on average expected the number of paying users of Netflix's new streaming service to reach 5.49 million in the third quarter, according to data provided by market intelligence agency StreetAccount.

By region, the number of new paying users in the United States and Canada in the third quarter of Netflix was 1.75 million, compared with 100000 in the same period last year; 3.95 million in Europe, the Middle East and Africa, compared with 570000 in the same period last year; and 1.18 million in Latin America, compared with 310000 in the same period last year. The number of new paying users in the Asia-Pacific region was 1.88 million, compared with 1.43 million in the same period last year.

In terms of revenue per user, the average revenue per user from the United States and Canada in the third quarter of Netflix was $16.29, which was basically the same as that of $16.37 in the same period last year, excluding the impact of exchange rate changes. The average income per user from Europe, the Middle East and Africa was $10.98, an increase of 2% compared with $10.81 in the same period last year, excluding exchange rate changes. The average income per user from Latin America was $8.85, up 3% from $8.58 in the same period last year, and 8% year-on-year excluding exchange rate changes The average revenue per user from the Asia-Pacific region was US $7.62, down 9% from US $8.34 in the same period last year, and 6% year-on-year excluding exchange rate changes.

Performance outlook: Netflix expects revenue of $8.692 billion in the fourth quarter of fiscal 2023, up 10.7% from the same period last year, which falls short of analysts' expectations; operating profit will reach $1.16 billion and operating profit margin will reach 13.3%; net profit will reach $956 million and earnings per share will reach $2.15, which is in line with analysts' expectations.

On average, 30 analysts expected Netflix's fourth-quarter revenue to reach $8.77 billion, while 33 analysts expected Netflix's fourth-quarter earnings per share to reach $2.15, according to Yahoo Finance.

Share price movements: Netflix shares fell $9.53, or 2.68%, to $346.19 in regular trading on the Nasdaq stock market. In after-hours trading as of 06:08 est on the 18th (06:08 Beijing time on the 19th), Netflix shares rose 12.37 per cent, or $42.81, to $389.00. In the past 52 weeks, the highest price for Netflix is $485.00 and the lowest price is $252.09.

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