Netflix Bounces Back
- Vavio
- Oct 20, 2022
- 1 min read
Let's start with the star of the show: subscribers. With 2.41m new subscribers this quarter, the brand added more than double the 1.09m the street was expecting and impressively reversed its sluggish growth of the last few quarters. The streamer plans to crackdown on password sharing and expects that to help them add 4.5m subscribers in Q1. Talk about a comeback.
Netflix also smashed expectations on both ends, with EPS of $3.10 soaring past estimates of $2.13 and revenues sneaking ahead of expectations at 7.93bn. The company said a slew of popular shows like Stranger Things and The Gray Man helped rake in the cash, but also recognizes that it’s gonna have to keep up the hits amid increasing streaming competition.
Shares rocketed as much as 14% in after hours trading to hit their highest levels since April when Netflix reported its first subscriber loss – if those gains hold it’s still down 57% in the last year though. The brand is “very optimistic” about its upcoming ad tier, though currency pressures still led to a forecast of $7.8bn in revenue for Q4. Either way, investor faith seems to be restored – for now.
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