Netflix revenue growth hits three-year low, shares fall

· Tech · United States

Netflix reported its slowest quarterly revenue growth in three years, with third-quarter revenue rising 11.8% to $12.9 billion, in line with its own guidance. The company now expects full-year revenue to grow 13% to $51.5 billion, slightly below prior expectations. Shares fell after the report, with investors worried about slowing engagement growth. Netflix listed improvements to monetization as a top priority going forward, alongside boosting entertainment value and leveraging new technology; it made no mention of its games or video podcast plans during the earnings release, a shift from past quarters. The results followed a content executive shake-up at the streamer.

Why it matters：The results suggest streaming's growth engine is shifting from subscriber gains to pricing and advertising, a test for the whole sector's valuation model.

Key points

  • Q3 revenue of $12.9 billion, up 11.8%
  • Full-year revenue guidance of $51.5 billion, up 13%
  • No discussion of games or video podcasts in the earnings release

Sources (original reporting)

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