Netflix blames tax dispute in Brazil for rare quarterly earnings letdown

Core Insights - Netflix missed earnings targets due to a $619 million expense related to a tax dispute in Brazil, breaking a six-quarter streak of exceeding analyst projections [1][2] - Despite the earnings shortfall, Netflix's revenue matched analyst forecasts at $11.5 billion, with an 8% increase in earnings to $2.5 billion or $5.87 per share [2][3] - Analysts have mixed views on the implications of the earnings report, with some expressing concern over potential subscriber growth slowdown, while others maintain confidence in Netflix's underlying business [3] Financial Performance - Netflix reported earnings of $2.5 billion, or $5.87 per share, for the July-September quarter, marking an 8% increase year-over-year [3] - Revenue increased by 17% from the previous year to $11.5 billion, aligning with analyst expectations [3] - The company's stock price has risen approximately 40% this year, although it fell about 6% in extended trading following the earnings announcement [4] Subscriber Metrics - Netflix no longer discloses specific subscriber numbers, but revenue growth suggests an increase from approximately 302 million subscribers at the end of the previous year [5] - The total worldwide audience, including multiple individuals in the same household, is approaching 1 billion according to co-CEO Ted Sarandos [6]