Netflix Forecasts Fourth Quarter Sales Shortfall
Netflix reported third-quarter sales of $12.9 billion but forecast a fourth-quarter slowdown due to underperforming advertising revenue.
Netflix Inc. reported third-quarter sales of $12.9 billion, meeting Wall Street expectations. Despite this result, the company forecast fourth-quarter sales of $13.4 billion, a figure that falls short of analyst predictions.
This projection marks the fourth consecutive quarter of slowing sales growth for the company. The projected growth rate for the final quarter of the year is 11.5%, a significant decrease from the 17.6% growth rate recorded in the fourth quarter of the previous year.
Netflix attributed the sales shortfall to its advertising business. The company expects the advertising segment to deliver $300 million less than originally projected.
