Netflix Inc NFLX Co-CEO Reed Hastings expressed his relief with the streaming giant snapping its run of receding quarterly numbers on Tuesday.
What Happened: "Thank God we're done with shrinking quarters," said Hastings at the company’s third-quarter earnings call.
It's "a big deal to go back to the positivity."
On the company’s guidance for the fourth quarter, Hastings said that it was “reasonable” but not “fantastic.”
Co-CEO Ted Sarandos said on Netflix’s $17 billion annual content spending that the streaming firm was now getting returns from the push.
"Both the scope and scale as well as the range and the cadence of hits is improving," said Sarandos.
“I feel better and better about that $17 billion of content spend because what we have to do is get better and better at getting more impact per billion dollars spent than anybody else."
Why It Matters: Sarandos said at the earnings call that he believes that spending is about the “right level” currently and that they will “revisit that number” as the company’s revenue re-accelerates.
Netflix reported third-quarter revenue of $7.93 billion, beating a Wall Street estimate of $7.84 billion on Tuesday. Earnings per share came in at $3.10, beating an estimate of $2.13, according to data from Benzinga Pro.
The company guided fourth-quarter revenue to be $7.8 billion and earnings per share of 36 cents. It is looking to add 4.5 million new paid subscribers in the period.
Price Action: On Tuesday, Netflix shares shot up 14.3% in the after-hours trading to $275.40 after closing 1.7% lower in the regular session at $240.86, according to data from Benzinga Pro.
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