From Variety · Todd Spangler · · 1m 10s
Netflix Q3 Earnings Meet Wall Street, Q4 Costs from Layoffs
Netflix's Q3 revenue matches Wall Street estimates but Q4 earnings will drop due to layoffs.
In brief
Netflix's Q3 revenue matches Wall Street estimates but Q4 earnings will drop due to layoffs. Netflix's Q3 revenue met Wall Street expectations while Q4 earnings will be hurt by costs from mass layoffs. Originally reported by Variety.
Netflix Q3 Revenue Meets Wall Street Estimates
Netflix posted Q3 revenue of $12.87 billion, up 11.8% year-over-year.
Q4 Revenue Beats Wall Street Expectations
Netflix projects Q4 revenue of $13.4 billion, an increase of 11.5%.
Q3 Earnings Beat Wall Street
Net income came in at $3.66 billion, translating to earnings of 87 cents per share.
Layoffs Impact Q4 Earnings
Netflix laid off 1,000 employees in a restructuring effort to reposition itself.
Q4 Operating Margin Drops
Netflix projects a Q4 operating margin of 26.0%, including a 120 basis point negative impact from layoffs.
Layoffs and Leadership Changes
Netflix ousted chief content officer Bela Bajaria, tapping Peter Rice to replace her.
Q4 Earnings Will Be Crimped by Layoffs
Q4 earnings will be crimped by costs associated with mass layoffs.
What to remember
Netflix's Q3 revenue met Wall Street expectations while Q4 earnings will be hurt by costs from mass layoffs.
