Netflix reports $6.44 billion in revenue for Q3
While growth slowed with 2.2m paid net adds in Q3 vs. 6.8m in Q3’19, the company says that it is primarily due to their record first-half results Netflix has reported its Q3 earnings for 2020, posting a 2% increase in revenue from the beginning of the quarter. Revenue stood at $ $6.44 billion. Growth slowed with 2.2m paid net adds in Q3 vs. 6.8m in Q3’19. The company says that it is primarily due to their record first-half results and the "pull-forward effect" they mentioned in April and July. In the first nine months of 2020, Netflix added 28.1m paid memberships, exceeding 27.8 million in 2019. In Q3, average streaming paid memberships rose 25%, while streaming ARPU decreased 1.6% year over year. "Excluding a foreign exchange (F/X) impact of -$158m, streaming ARPU increased 1% vs. prior year. Revenue was 2% above our beginning-of-quarter guidance primarily due to slightly higher than expected ARPU," wrote the company in the letter addressed to stakeholders. Netflix further added that retention was healthy and engagement per member household was up year-over-year in this quarter. APAC was the largest contributor to paid memberships growth in the quarter(46% of Q3 global paid net adds) and the revenue in the region rose to 66% Y-o-Y. "For Q4‘20, we forecast 6.0m paid net adds vs 8.8m in Q4‘19," added the company.