Netflix recently announced its financial results with positive numbers, but its projections for the future ended up worrying Wall Street analysts. Despite closing the quarter with 10 million new subscribers, the company sees weak growth for the next three months, after a user boom caused by the pandemic.
In addition to gaining 10 million users, the company ended the quarter with more than 193 million payers and had a 25% increase in its revenue, which went to $ 6.15 billion. The numbers follow the good phase of the company, which had already attracted 15 million new subscribers at the beginning of the year.
The pandemic also helped cut the streaming giant’s spending. Netflix saved 28% of its marketing revenue and had less spending on content in the past three months, as the studios were closed because of the coronavirus.
While Netflix’s figures for this quarter were positive, the company discouraged investors for the current quarter. According to the company, the next three months may not be as good as expected.
The company said it expects to add approximately 2.5 million new subscribers, a result that is considerably less than the number achieved in the last three months. The company projected a drop in growth because of the above-normal success previously achieved.
According to Reed Hastings and Ted Sarandos, who run Netflix, the pandemic has considerably boosted the platform, which has recently broken appreciation records. In addition, the company recalled that it achieved above-average numbers in the third quarter of 2019 because of the debut of seasons of two long-awaited series: Stranger Things and La Casa de Papel.