From The Motley Fool · Jeremy Bowman · · 50s
Netflix Cuts Ad Revenue Forecast
Netflix reduced its ad revenue forecast by $300 million, but its earnings beat still matters more for investors.
In brief
Netflix reduced its ad revenue forecast by $300 million, but its earnings beat still matters more for investors. Netflix cut its ad revenue forecast from $3 billion to $2.7 billion, but its earnings per share beat estimates. Originally reported by The Motley Fool.
Netflix Earnings Report
Netflix released third-quarter earnings after hours, trading down 6%.
Ad Revenue Forecast Cut
Netflix reduced its ad revenue forecast from $3 billion to $2.7 billion.
Weak Growth Trends
Netflix reported its slowest top-line growth in three years, expecting continued moderation.
Earnings Beat
Earnings per share improved from $0.59 to $0.87, beating estimates of $0.82.
Ad Business Challenges
Netflix blamed slower ad product rollout on technical issues, not weak demand.
Investor Concerns
Netflix needs to prove it can stop growth slowdown or stock will continue to slide.
At a glance
Netflix cut its ad revenue forecast from $3 billion to $2.7 billion, but its earnings per share beat estimates.
