Netflix added 2.2 million paid subscriptions in Q3, down from 6.8 million in Q3 2019, according to the press release. Slowdowns in Q3 subscriptions attributed to strong gains during the first half of the year. The company added 28.1 million paid subscribers in the first nine months of 2020, above 27.8 million added for the whole of 2019.
- Netflix forecasts 6.0 million paid net adds in Q42020, below 8.8 million in Q42019.
- Forecasted paid net adds for 2020 expected to be 34 million above the prior high of 28.6 million in 2018.
- Q4 2020 operating margins projected to be 13.5%, up from 8.45% last year.
- Company expects to revert to pre-Covid growths once the world recovers from the pandemic.
- In 2021, the company expects to launch a number of Netflix originals and invest heavily in local language content.
Netflix stock fell 5% on Tuesday following the subscriber gains report. NFLX: NASDAQ is down on premarket 5.12%, DIS: NYSE is down on premarket 0.60%