TV & Movies

Netflix Flies Past Q3 Earnings Forecasts

And we’re only looking at two weeks of ”Squid Game“

Netflix

Netflix reported its third-quarter 2021 financial results as the stock market closed on Tuesday.

Wall Street had forecast earnings per share (EPS) of $2.56 on $7.48 billion in revenue, according to a consensus estimate compiled by Yahoo Finance. Those are, of course, in line with what Netflix itself provided alongside its Q2 performance. At the time, Netflix forecast Q3 net income of $1.158 billion, revenue of $7.477 billion and diluted earnings per share of $2.55.

On Tuesday, Netflix reported diluted EPS of $3.19 on $7.483 billion in revenue, meeting the top line number and blowing by the bottom one. Net income was $1.449 billion.

The previous quarter, Netflix reported revenue of $7.342 billion, a profit of $1.353 billion and diluted EPS of $2.97.

Netflix reported it had 213.56 million global paid subscribers in Q3 2021, growth of 4.38 million.

The company forecast it would hit 212.68 million subscribers in the third quarter of 2021, which would have represented year over year grown of 9%. Netflix closed the second quarter with 209.18 million global streaming paid memberships, or 8.4% growth year over year growth.

The smash hit of Netflix’s third quarter, no doubt, was “Squid Game.” But the Korean series only debuted with like two weeks to go in the quarter, and it took that time to become a word-of-mouth breakout. Expect to see a heavy portion of the “Squid Game” effect in Quarter 4 numbers. Netflix has already announced that “Squid Game” viewership destroyed the impressive performance of its previous hottest-out-the-game original series, “Bridgerton.”

Other highlights in the quarter include Season 5 of “La Casa de Papel” (aka “Money Heist”) and Season 3 of “Sex Education.” “Virgin River” (pictured above) also returned in Q3.

Netflix stock (NFLX) closed Tuesday at TK per share. The U.S. stock markets officially reopen at 9:30 a.m. ET/6:30 a.m. PT.

Netflix execs will discuss the quarter in greater detail during a video interview at 6 p.m. ET/3 p.m. PT. We’ll find out then if Dave Chappelle’s controversial special “The Closer” comes up during a Q&A conversation between the streaming service’s most senior executives and media analysts.

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