Netflix (NYSE: NFLX) appears to have had quite an eventful year in 2019 with the launch of streaming competitors like Apple TV + and Disney + which led to several speculations on Netflix’s growth and future. The streaming giant will report fourth quarter 2019 earnings results on January 21, 2020. Meanwhile, let’s take a look at how Netflix fared thus far in 2019.
Looking at the consolidated revenue trend through the first three quarters of 2019, Netflix delivered consistent growth on a year-over-year basis of 22% for Q1, 26% for Q2 and 31% for Q3. The company expects revenues for the fourth quarter to grow 30% to $5.4 billion. Revenues also grew on a sequential basis and are expected to continue the trend in Q4.
In terms of revenue by geography, Netflix posted growth across all regions during the first three quarters of 2019 both on a year-over-year basis and sequentially. Revenues grew 23% in the US and Canada region in the most recent quarter compared to the same period last year. In the Europe, Middle East and Africa (EMEA) and Latin America regions, revenue rose 40% and 31% respectively. The highest growth came from Asia-Pacific which jumped 54%.
Turning to subscriber growth, Netflix posted consistent increases in the number of subscribers on a consolidated basis for the first three quarters of 2019, both sequentially and on a year-over-year basis. Subscriptions grew 25% in Q1, 22% in Q2 and 21% in Q3 on a year-over-year basis. The number of subscribers is expected to grow 19% to 166 million in the fourth quarter of 2019.
Also read: Netflix Q3 2019 Earnings Conference Call Transcript
By region, the streaming giant saw subscriber growth across all its geographies both on a year-over-year and sequential basis. In the third quarter of 2019, the number of subscribers in the US and Canada rose 6% year-over-year. In the EMEA and Latin America regions, subscribers grew 42% and 20% respectively. Asia-Pacific delivered the highest growth in subscribers of 55%.
All in all, Netflix saw strong revenue and subscriber growth thus far in the year and the company has been investing both in original content as well as in all-time popular shows in order to drive viewership and engagement. This strategy appears to be paying off and despite the competition from rivals, the company had a strong 2019 and seems poised to maintain this success in 2020.
Shares of Netflix have gained 24% year-to-date and 35% over the trailing 52 weeks.