Netflix posted 11.8% revenue growth in the third quarter and projected an 11.5% increase for the next period, extending a sequence of moderating annual gains at the streaming company.
Revenue totaled $12.874 billion in the three months ended Sept. 30, compared with $11.510 billion a year earlier. Netflix’s Oct. 20 shareholder letter rounded the increase to 12% and said it was “consistent with our forecast.”
Net income rose to $3.664 billion from $2.547 billion, while diluted earnings increased to 87 cents per share from 59 cents. Operating margin reached 34.6%, up from 28.2%. Netflix said membership gains, pricing and advertising contributed to revenue growth.
For the fourth quarter, Netflix projected revenue of $13.442 billion, 11.5% above the year-earlier period. Year-over-year revenue growth had eased across the preceding four quarters, from 17.6% to 16.2%, then 13.4% and 11.8%. The forecast would put the annual growth rate 0.3 percentage points below the third quarter’s rate. EconoTimes previously covered the fourth-quarter growth outlook.
