Netflix (NasdaqGS:NFLX) Q3 2025 Earnings Call October 21, 2025 04:45 PM ET Company ParticipantsTed Sarandos - Co-CEOGreg Peters - Co-CEOSpencer Wang - VP of Finance, IR and Corporate DevelopmentSpencer Neumann - CFOSpencer WangGood afternoon and welcome to the Netflix Q3 2025 earnings interview. I'm Spencer Wang, VP of Finance, IR, and Corporate Development. Joining me today are Co-CEOs Ted Sarandos and Greg Peters, and CFO Spence Neumann. As a reminder, we will be making forward-looking statements, and act ...

Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][10] - Engagement metrics showed record share TV time in Q3 in both the U.S. and the U.K., indicating healthy user engagement [2][17] - The company is on track to more than double ad revenue this year, marking significant growth in its advertising segment [2][12] Business Line Data and Key Metrics Changes - The live offerings and gaming segments are being expanded, with notable events like the Canelo Crawford fight achieving record viewership [3][26] - The K-pop, Demon Hunters film has become a cultural phenomenon, demonstrating the company's ability to create popular content that resonates globally [5][24] - The advertising business is seeing growth, with more than doubling of U.S. upfront commitments and higher rates of growth in programmatic advertising [12][14] Market Data and Key Metrics Changes - The company estimates it currently captures only about 7% of the addressable market in consumer spending and 10% of time spent on TV in its largest market, indicating substantial growth potential [4] - Total view hours grew faster in Q3 2025 compared to the first half of the year, achieving the highest quarterly view share ever in the U.S. and U.K. [17][18] Company Strategy and Development Direction - The company aims to continue focusing on profitable growth and reinvesting in its core business while embracing competition as a driver for improvement [4][32] - There is a strong emphasis on expanding original content and enhancing user engagement through interactive features and gaming [39][50] - The company is cautious about M&A, preferring organic growth and selective acquisitions that align with its strategic goals [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, despite challenges such as the Brazilian tax issue [2][10] - The company is excited about its upcoming content slate for Q4 and 2026, which includes returning popular series and new films [20][21] - Management believes that the shift from linear viewing to streaming will continue to benefit the company long-term [19] Other Important Information - The Brazilian tax matter is a unique gross tax on outbound payments, which has been flagged as a potential exposure in previous filings [8][10] - The company is exploring the integration of high-quality video podcasts into its offerings through a partnership with Spotify [22] Q&A Session Summary Question: Health of the business and future opportunities - Management believes the business is healthy and sees significant opportunities for growth ahead [2] Question: Nature of the Brazilian tax expense - The tax is a gross tax on outbound payments, not an income tax, and has impacted operating income for Q3 2025 [7][10] Question: Revenue and operating income growth for 2026 - Full year 2026 guidance will be provided in January, but the company aims to sustain healthy revenue growth and expand margins [11] Question: Advertising growth expectations - The company is excited about doubling ad revenue in 2025 and sees room for growth in programmatic advertising [12][14] Question: Engagement metrics and content performance - Total view hours grew in Q3 2025, with significant engagement from events like the Canelo Crawford fight and the K-pop film [17][18] Question: Strategy regarding M&A and industry consolidation - The company remains focused on organic growth and selective M&A opportunities, viewing industry consolidation as neither a threat nor a significant opportunity [32][33] Question: Impact of AI on content creation - Management sees AI as a tool to enhance creativity rather than replace it, focusing on leveraging AI for better storytelling and productivity [47][50]

Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][16] - Engagement metrics remain healthy, achieving record share of TV time in both the US and the UK, with the highest quarterly view share ever recorded [3][26] Business Line Data and Key Metrics Changes - The advertising segment is on track to more than double ad revenue this year, with significant growth in programmatic advertising [3][20] - The company achieved its best ad sales quarter ever, indicating strong performance in the advertising business [3] Market Data and Key Metrics Changes - The company is currently capturing only about 7% of the addressable market in terms of consumer spending and 10% of time spent on TV in its largest markets, indicating substantial growth potential [5][6] - The Canelo Crawford fight was the most viewed men's championship fight this century, demonstrating the impact of live events on engagement [39] Company Strategy and Development Direction - The company focuses on continuous improvement in key areas such as technology and content to build a scalable global streaming business [4][10] - The strategy includes expanding original content and enhancing engagement through interactive features and gaming [62][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, emphasizing the importance of innovation and competition [2][5] - The company plans to sustain healthy revenue growth, expand margins, and increase free cash flow in the upcoming years [17][18] Other Important Information - The Brazilian tax matter is a unique gross tax on outbound payments, which has been recorded as a component of cost of revenues, affecting Q3 results [12][14] - The company is excited about upcoming content, including new seasons of popular shows and films, which are expected to drive engagement in 2026 [31][33] Q&A Session Summary Question: Can you talk broadly about the health of the business and the opportunity ahead? - Management believes the business is very healthy, with good progress on key initiatives and a lot of work ahead to fully realize opportunities [2] Question: Can you provide more color on the nature of the tax expense? - The Brazilian tax is a gross tax on outbound payments, not an income tax, and has been recorded as a cost of revenues affecting Q3 results [11][12] Question: Do you have any early views on revenue and operating income growth for 2026? - Full year 2026 guidance will be issued in January, but the financial objectives remain unchanged, focusing on healthy revenue growth and margin expansion [17][18] Question: Should we interpret the doubling of upfront commitments in advertising to mean that full year 2026 advertising could also double? - While the company is excited about the growth trajectory, specific 2026 guidance is not provided at this time [19][20] Question: Are fill rates improving in line with expectations as the Netflix ad suite and new demand partnerships scale up? - Fill rates have improved, and the company believes they will continue to improve as go-to-market capabilities develop [25] Question: Are you seeing a pickup in engagement as expected? - Total view hours grew faster in Q3 2025 than in the previous year, with significant engagement from key events and content [26][28] Question: How should we think about the recent deal with Spotify? - The partnership with Spotify aims to provide more entertainment options for members, integrating high-quality video podcasts into the Netflix offering [34] Question: Do you see potential industry consolidation reshaping the competitive landscape? - The company remains focused on organic growth and selective M&A, viewing industry consolidation as neither a threat nor a significant opportunity [50][56] Question: How do you think gaming could change the time members spend with Netflix each day? - Gaming is seen as a significant opportunity for engagement, with plans to expand interactive features and high-quality games [62][63]

Financial Data and Key Metrics Changes - Organic growth for Q3 2025 was 2.6%, with a year-to-date growth of 3%, aligning with annual guidance [5][10] - Non-GAAP adjusted EBITDA for Q3 2025 was $551.6 million, with an adjusted EBITDA margin of 16.1%, up 10 basis points from the previous year [5][11] - Non-GAAP adjusted net income per share increased by 10.3% to $2.24 compared to Q3 2024 [5][11] - The reported income tax rate was 27.2% in Q3 2025, up from 26.8% in the prior year, primarily due to non-deductible acquisition-related costs [12][13] Business Line Data and Key Metrics Changes - Media and advertising revenues grew by 9%, while creative services were impacted by lower project work due to macroeconomic uncertainty [14] - Precision marketing growth was just under 1%, with solid growth in the U.S. offset by declines in Europe [14] - Public relations declined by 8%, largely due to the absence of U.S. national election-related revenue [15] - Healthcare services saw a 2% organic decline, with new business wins not fully compensating for spending declines [15] - Branding and retail commerce decreased by 17%, and experiential services declined by 18% due to tough comparisons with the previous year [15] Market Data and Key Metrics Changes - U.S. revenue growth was 4.6%, while the UK saw growth of 3.7%, but continental Europe experienced a decline of 3.1% [16] - Non-Euro markets delivered organic growth, but this was offset by declines in the events business [16] Company Strategy and Development Direction - The company is focused on the integration of the proposed acquisition of Interpublic Group, with expectations to close by late November [5][6] - The launch of Omni+, a next-generation marketing operating system, is anticipated to enhance client capabilities and drive growth [7][8] - The company aims to exceed expected synergies from the acquisition, with a disciplined approach to minimize operational disruption [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business fundamentals, noting that organic growth would have been approximately 4% without the impact of the previous year's Olympic and election-related revenues [32] - The tone of client conversations has improved, with clients showing optimism about project spending in Q4 [70] Other Important Information - The company continues to maintain a strong liquidity position with cash equivalents and short-term investments totaling $3.4 billion [20] - The book value of outstanding debt was $6.3 billion, reflecting a reduction from the previous year [20] Q&A Session Summary Question: Update on pro forma financials post-acquisition - Management plans to disclose future operations and portfolio details shortly after the acquisition closes, likely around CES in January [25] Question: Deceleration in precision marketing - The decline was primarily due to issues in the Cordara consulting business related to government work in Europe, but the overall pipeline remains strong [26] Question: Confirmation of organic growth guidance - Management is comfortable with the original guidance and expects to capture significant project work in Q4 [30][31] Question: Opportunities for revenue synergies post-acquisition - Key opportunities identified include media, healthcare, and precision marketing, with expectations for significant growth in these areas [68] Question: Client sentiment and marketing budgets - Conversations with clients have shifted to include discussions on generative AI, with budgets remaining stable and project spending anticipated in Q4 [70]

Texas Instruments (NasdaqGS:TXN) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsRafael Lizardi - Senior VP and CFOHaviv Ilan - CEOTimothy Arcuri - Managing DirectorMike Beckman - Head of Investor RelationsConference Call ParticipantsChristopher Danely - Managing Director and Senior Semiconductor Equity Research AnalystChristopher Caso - Managing Director and Senior Equity AnalystStacy Rasgon - Managing Director and Senior AnalystTorres Vanberg - Equity Research AnalystJoseph Moore - ...

Financial Data and Key Metrics Changes - Organic growth for Q3 2025 was 2.6%, with a year-to-date growth of 3%, aligning with annual guidance [5][10] - Non-GAAP adjusted EBITDA for Q3 2025 was $551.6 million, with an adjusted EBITDA margin of 16.1%, up 10 basis points from the previous year [5][11] - Non-GAAP adjusted net income per share increased by 10.3% to $2.24 compared to Q3 2024 [5][11] - The reported income tax rate for Q3 2025 was 27.2%, up from 26.8% in the prior year, primarily due to non-deductible acquisition-related costs [12][13] Business Line Data and Key Metrics Changes - Media and advertising revenues grew by 9%, while creative services were impacted by lower project work due to macroeconomic uncertainty [14] - Precision marketing growth was just under 1%, with solid growth in the U.S. offset by declines in Europe [14] - Public relations declined by 8%, largely due to the absence of U.S. national election-related revenue [15] - Healthcare revenues decreased by 2% organically, with declines in both U.S. and European agencies [15] - Branding and retail commerce fell by 17%, and experiential services declined by 18% due to tough comparisons with the Summer Olympics [15] Market Data and Key Metrics Changes - U.S. revenue growth was 4.6%, while the U.K. saw growth of 3.7%, but continental Europe experienced a decline of 3.1% [16] - Non-Euro markets delivered organic growth, but this was offset by declines in the events business [16] Company Strategy and Development Direction - The company is focused on the integration of the proposed acquisition of Interpublic, with plans to close the deal by late November [5][6] - The launch of Omni+, a next-generation marketing operating system, is anticipated to enhance client services and operational efficiency [6][8] - The integration planning aims to exceed expected synergies from the acquisition, with a disciplined approach to minimize operational disruption [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects and the value expected from the proposed combination with Interpublic [9][10] - The company remains optimistic about capturing project work in Q4, which could significantly impact year-end results [31][32] - Despite challenges, the fundamentals of the business are strong, with underlying growth projected at approximately 4% when excluding the impact of the previous year's events [32] Other Important Information - The company continues to maintain a strong liquidity position with cash equivalents and short-term investments totaling $3.4 billion [20] - Free cash flow for the nine months ended September 30, 2025, was impacted by acquisition-related costs, but operating capital improved significantly [18][19] Q&A Session Summary Question: When will pro forma financials be available post-acquisition? - Management indicated plans to disclose future operations and portfolio details shortly after the acquisition, likely around CES in January [25] Question: What caused the deceleration in precision marketing? - The decline was primarily due to cutbacks in government work in Europe, particularly in the Cordara consulting business [26] Question: Confirmation of organic growth guidance for the year? - Management confirmed that they are comfortable with the original guidance and expect to remain within the 2.5%-4.5% range [30] Question: Opportunities for revenue synergies post-acquisition? - Key opportunities identified include media, healthcare, and precision marketing, with expectations for significant growth in these areas [68] Question: Client sentiment regarding the business environment? - Conversations with clients indicate a cautious optimism, with budgets remaining stable and project spending expected to increase in Q4 [70]

Manhattan Associates (NasdaqGS:MANH) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsGeorge Kurosawa - Equity Research Senior Associate of Back Office SoftwareDennis Story - CFOMark Schappel - Managing DirectorMichael Bauer - Head of Investor RelationsBrian Peterson - Managing Director of Application SoftwareEric Clark - President and CEOTerry Tillman - Managing Director of Application Software and SaaS Equity ResearchConference Call ParticipantsJoe Vruwink - Senior Research Analyst o ...

Texas Instruments (NasdaqGS:TXN) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsRafael Lizardi - Senior VP and CFOHaviv Ilan - CEOTimothy Arcuri - Managing DirectorMike Beckman - Head of Investor RelationsConference Call ParticipantsChristopher Danely - Managing Director and Senior Semiconductor Equity Research AnalystChristopher Caso - Managing Director and Senior Equity AnalystStacy Rasgon - Managing Director and Senior AnalystTorres Vanberg - Equity Research AnalystJoseph Moore - ...

Manhattan Associates (NasdaqGS:MANH) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsGeorge Kurosawa - Equity Research Senior Associate of Back Office SoftwareDennis Story - CFOMark Schappel - Managing DirectorMichael Bauer - Head of Investor RelationsBrian Peterson - Managing Director of Application SoftwareEric Clark - President and CEOTerry Tillman - Managing Director of Application Software and SaaS Equity ResearchConference Call ParticipantsJoe Vruwink - Senior Research Analyst o ...

Intuitive Surgical (NasdaqGS:ISRG) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsFrederick Wise - Managing DirectorDan Connally - Head of Investor RelationsTravis Steed - Managing Director, Equity Research, Medical TechnologyDavid Roman - Managing DirectorJamie Samath - CFODave Rosa - CEOConference Call ParticipantsAdam Maeder - Research AnalystPatrick Wood - Managing Director and Lead AnalystLawrence Biegelsen - Senior AnalystRobbie Marcus - Managing Director and Senior AnalystOper ...