3 key Takeaways from the Q3 Earnings Report for Netflix.

  3 key Takeaways from the Q3 Earnings Report for Netflix. The streaming entertainment giant's earnings for the last three months have been very positive. As always, Netflix (NASDAQ:NFLX), the leading worldwide streaming service provider, is getting all the attention. The stock price has skyrocketed over the past decade. Three key points that will draw the attention of shareholders in the last quarterly report published.

• The growth of both domestic and international service memberships is accelerating.

Of the 4.4 million subscribers Netflix added in the third quarter, 4.3 million came from outside the UCAN (US and Canada) region. The huge successes of local language content such as La Casa de Papel (Money Heist in the US), Lupine and Squid Game have played an important role in bolstering their international ambitions. Each of these series has become wildly popular all over the world. The company currently produces content in 45 countries.

• There is a change in the way content success is measured.

The way this content is measured forward is to get a needed upgrade. For example, when Netflix says that 142 million households are watching Squid Game, this actually means that the first 2 minutes of the show were watched.

3 key Takeaways from the Q3 Earnings Report for Netflix.

Therefore, he needs to make great efforts to increase the interest of the audience. In the future, Netflix will report the number of hours its content has been watched. Therefore, it prefers to broadcast series with more than one season and long episodes.

• Netflix's financial position is strong

In the fourth quarter of 2020, management claimed that Netflix no longer needed outside funding to run its day-to-day operations, and that remains the case today. Considering Netflix's $275 billion market value, $14.8 billion in long-term debt on the balance sheet is not a problem. It is strongly believed that Netflix will be able to generate a steady stream of cash annually from 2022.  

Source: The Motley Fool

 

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