Netflix saw its profits continue to surge in Q3, though margins missed the company’s own guidance due to an unusual dispute with tax authorities in Brazil.
The streaming giant reported total revenues of $11.5 billion, operating income of $3.2 billion and a margin of 28.2 percent, all up double digits from a year ago.
Netflix is no longer releasing its subscriber figures, choosing instead to put its focus on revenue and income, as it experiments with different revenue models like advertising, and with the price of subscriptions in different markets remaining somewhat variable.
The Netflix results in Q3 continue a trend that the company saw in Q2, with revenue and profits soaring despite the tough competitive environment, underscoring the platform’s dominance in the space.
Coming in to the quarter, Wall Street was hoping to get more clarity from Netflix on the opportunities and risks associated with artificial intelligence, though it also expected executives to take a victory lap on KPop Demon Hunters. Earlier today the company announced wide-ranging deals with both Mattel and Hasbro for toys, games, collectibles and other products based on the franchise.
More to come.
