(L-R) Reed Hastings and Ted Sarandos attend the “Marseille” Netflix TV Serie World Premiere At Palais Du Pharo In Marseille, on May 4, 2016 in Marseille, France.
Stephane Cardinale | Corbis | Getty Images
Netflix reported earnings for its third quarter of 2020 after the bell on Tuesday. The company fell short of analyst estimates on earnings per share and global paid net subscriber additions, but exceeded expectations on revenue.
Shares fell 6% during after hours trading.
Here are the key numbers:
- Earnings per share (EPS): $1.74 vs $2.14 expected, according to Refinitiv consensus estimate
- Revenue: $6.44 billion vs $6.38 billion expected, according to Refinitiv
- Global paid net subscriber additions: 2.20 million vs. 3.57 million expected, according to FactSet
It’s the first report since longtime Chief Content Officer Ted Sarandos was promoted to co-CEO alongside long-time CEO Reed Hastings.
Netflix told shareholders last quarter that growth was beginning to slow again after an initial uptick when stay-at-home orders proliferated around the world. Executives expect to feel the impact of postponed filming more in 2021, but still said last quarter that the total number of original programs that year would exceed that for 2020.
Netflix has tightened up its subscription practices in recent months. In May, the company said it would proactively cancel customers’ subscriptions if they hadn’t watched anything in a year and didn’t respond to outreach messages. This month, several outlets reported that Netflix had phased out its 30-day free trial offer as it experiments with new marketing tactics, like letting prospective customers watch a sampling of shows on their platforms or YouTube.
This story is developing. Check back for updates.