The United States video streaming service provider Netflix today announced the company’s third-quarter fiscal year 2023 financial results. According to the report, the company’s third-quarter revenue was $8.542 billion, an increase of 7.8% compared with $7.926 billion in the same period last year; net profit was $1.677 billion, an increase of 20% compared with $1.398 billion in the same period last year; and earnings per share were $3.73, compared with $3.10 in the same period last year.
Netflix’s third-quarter revenue and earnings per share exceeded Wall Street analysts’ previous expectations, and the total number of paid subscribers to the global streaming service and the number of new paid subscribers worldwide also exceeded expectations, driving its stock price up more than 12% after hours.
It’s worth pointing out that Netflix added the highest number of new paid subscribers globally in the third quarter since the second quarter of 2020 (when 10.1 million new paid subscribers were added globally), when people were forced to stay at home due to restrictions caused by the new crown epidemic.
Key performance:
Netflix reported net income of $1.677 billion for the fiscal quarter ended Sept. 30, up 20% from $1.398 billion a year earlier, and earnings per share of $3.73 versus $3.10 a year earlier, a result that beat analysts’ previous estimates. According to data provided by Yahoo Finance, 34 analysts previously expected Netflix’s third-quarter earnings to reach an average of $3.49 per share.
Netflix’s third-quarter revenue was $8.542 billion, up 7.8 percent from $7.926 billion a year earlier, also slightly exceeding analysts’ expectations. According to data provided by Yahoo Finance, 31 analysts on average expected Netflix’s third-quarter revenue to reach $8.54 billion.
Geographically, Netflix’s third-quarter streaming revenue from the U.S. and Canada was $3.735 billion, compared with $3.602 billion a year ago; from EMEA, $2.693 billion, compared with $2.376 billion a year ago; and from Latin America, $1.143 billion, compared with $1.043 billion in the same period last year. Revenue from Latin America was $1.143 billion, compared to $1.024 billion in the same period last year, and revenue from Asia Pacific was $948 million, compared to $889 million in the same period last year.
Netflix reported a third-quarter operating profit of $1.916 billion, compared with $1.533 billion in the same period last year, and an operating margin of 22.4%, compared with 19.3% in the same period last year.
Netflix’s third-quarter net cash from operating activities was $1.992 billion, compared to $557 million in the same period last year, and free cash flow was $1.888 billion, compared to $472 million in the same period last year. Netflix now expects free cash flow for the full year of fiscal 2023 to be approximately $6.5 billion, which is consistent with its previous expectation of at least $5.0 billion. Netflix now expects free cash flow to be around $6.5 billion for the full year of fiscal 2023, a significant upward revision from its previous estimate of at least $5 billion.
Netflix’s cost of revenue for the third quarter was $4.931 billion, compared with $4.789 billion in the same period last year; marketing expenses were $559 million, compared with $568 million in the same period last year; technology and development expenses were $657 million, compared with $663 million in the same period last year; and general and administrative expenses were $479 million, compared with $373 million in the same period last year.
Netflix repurchased $2.5 billion worth of stock in the third quarter and expanded the size of its authorized share repurchase program by $10 billion.
Netflix ad program membership grew nearly 70% sequentially in the third quarter, and its ad program, which costs $6.99 per month for a monthly subscription in the U.S. market, continued to support the growth of its ad program.
Subscriber Data:
Netflix’s worldwide paid subscriber base for the streaming service totalled 247.15 million in the third quarter, up 10.8% from 223.09 million a year ago.
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