Netflix reported third-quarter results after the Tuesday close, with revenue up 11.8% to $12.87 billion in line with expectations and EPS rising from $0.59 to $0.87, beating estimates of $0.82. Revenue growth was the slowest in three years and engagement remained weak, sending the stock down 6% after hours. The company cut its full-year ad revenue forecast from $3 billion to $2.7 billion, blaming a slightly slower-than-expected rollout of some ad product capabilities. Its fourth-quarter guidance of $13.44 billion in revenue (up 11.5%) and $0.67 EPS fell below consensus of $13.52 billion and $0.73. Advertising makes up less than 6% of the $51.1 billion revenue the company expects this year, but the article argues it remains a key part of the growth story.
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