Unveiling Netflix’s (NFLX) Q3 2023 Earnings and Fascinating Insights

LOS ANGELES — Netflix is set to release its third-quarter earnings after the market closes on Wednesday.

The streaming giant is currently in the process of transitioning from a focus on subscriber growth to a focus on profitability. To boost its revenue, Netflix has implemented price increases, cracked down on password sharing, and introduced ad-supported tiers.

However, the company is facing challenges due to production delays caused by a nearly 150-day writers strike that ended in September and an ongoing actors strike that may disrupt and postpone production into the new year.

Investors are anxiously awaiting updates from Netflix’s executives on how they plan to navigate these obstacles, as well as for a progress report on the ad-supported tier.

Here’s what Wall Street analysts are expecting:

• Earnings: $3.49 per share, according to LSEG (formerly known as Refinitiv)
• Revenue: $8.54 billion, according to LSEG
• Total memberships: 243.88 million, according to Street Account

Last week, Netflix received a series of reduced price targets and revised forecasts from Wall Street analysts, who are eagerly awaiting more clarity on the company’s growth strategy.

Netflix’s executives previously cautioned investors that the ad-supported tier is still in its early stages and is not expected to significantly impact revenue until at least the end of the year. They have also indicated that operating margins will gradually expand as the company invests in new growth opportunities.

It has been less than six months since Netflix implemented its password crackdown, so the impact of this initiative on the company’s performance remains uncertain. The executives may provide some insights during the earnings call.

Prior to the earnings report, shares of Netflix experienced a decline. However, they have gained approximately 17% in value so far this year.