Netflix Inc NFLX Co-CEO Reed Hastings expressed relief that the streaming giant locked on its retreat barrel Quarterly figures on Tuesday.
What happened: “Thank God we’re done with contracting quarters,” Hastings said when announcing third-quarter results.
“It’s a big deal to get back to positivity.”
Regarding the company’s guidance for the fourth quarter, Hastings said it was “reasonable” but not “fantastic.”
Co-CEO Ted Sarandos Commenting on Netflix’s $17 billion in annual content spend, said the streaming company is now receiving proceeds from the push.
“Both the scope and scale, and the range and cadence of hits are improving,” Sarandos said.
“I’m always feeling better about spending $17 billion on content because what we have to do is keep getting better at making more impact per billion dollars spent than anyone else.”
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Why it matters: Sarandos said on the earnings call that he believes spending is currently at about the “right level” and that they would “reconsider that number” when the company’s earnings pick up again.
Netflix reported third-quarter revenue of $7.93 billion, beating Wall Street’s estimate of $7.84 billion on Tuesday. Earnings per share came in at $3.10, beating an estimate of $2.13 Data from Benzinga Pro.
The company forecast fourth-quarter revenue of $7.8 billion and earnings per share of 36 cents. It seeks to complement 4.5 million new paid subscribers during this period.
Price promotion: On Tuesday, Netflix shares surged 14.3% to $275.40 in after-hours trading after closing 1.7% lower at $240.86 in the regular session Data from Benzinga Pro.
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