The report sent Netflix shares up 2% in late trading. The company said that “After a lighter-than-normal content slate in Q1 and Q2 due to COVID-related production delays in 2020, we are seeing the positive effects of a stronger slate in the second half of the year.” Netflix cited the success of titles La Casa de Papel and Sex Education for propelling results: Netflix also touted the success of its big hit Korean-language series, Squid Game, which it said has been its most successful show ever: Revenue in the three months ended in September rose 16%, year over year, to $7.48 billion, yielding a net profit of $3.19 a share. Analysts had been modeling $7.48 billion and $2.57 per share. Netflix said it added 4.38 global streaming paid memberships, above consensus for 3.78 million, to end the quarter with 213.6 million paid subscribers, a 9.4% increase. Asia-Pacific was the biggest market gain for subs, the company said, with Latin America and the U.S. and Canada Markets growing more slowly: For the second consecutive quarter, the APAC region was our largest contributor to membership growth with 2.2m paid net adds (half of total paid net adds) as we are continuing to improve our service in this region. In EMEA, paid net adds of 1.8m improved sequentially vs. the 188k in Q2 as several titles had a particularly strong impact. The UCAN and LATAM regions grew paid memberships more slowly. These regions have higher penetration of broadband homes although we believe we still have ample runway for growth as we continue to improve our service. Netflix said it has begun testing a fledgling video game development effort, which it announced in Q2’s report: For the current quarter, the company sees revenue of $7.7 billion, and EPS of 80 cents a share. The company expects to add 8.5 million global streaming paid memberships. That compares to consensus for $7.7 billion, a $1.12-per-share profit, and 8.4 million net adds.
