Video streaming giant Netflix posted a 16% jump in third-quarter revenue YOY to $7.5 billion as operating income surged 33% to $1.8 billion.
- Revenue growth in the third quarter was driven by 9% and a 7% expansion in average paid streaming memberships and Average Revenue per Membership (ARM, respectively).
- The streaming platform added 4.4 million paid net additions compared to 2.2 in Q3 last year, backed by a stronger content slate.
- The APAC region was Netflix’s largest contributor to membership expansion for the second straight quarter, with 2.2 million paid net adds as it continues to upgrade the service in this region.
- In the EMEA region, paid net adds of 1.8 million improved consistently compared to the 188,000 in Q2. The UCAN and LATAM region posted slow gains in paid memberships.
For the fourth-quarter outlook, Netflix expects paid net adds of 8.5 million, in line with Q4’s 2020 paid net additions. For the full year 2021, it has forecasted an operating margin of 20% or slightly higher.
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