Netflix Finally Shreds an Outdated Metric
Netflix (NASDAQ: NFLX) really shouldn't be measured by the number of subscribers it adds in each quarter. This end-all, be-all metric of yesteryear is now so insignificant that the company will stop providing guidance for it.
Along with Tuesday's impressive third-quarter report, Netflix also laid out some long-expected changes to its quarterly guidance program. Specifically, this report will be the last time Netflix provides guidance for the next period's paid subscriber totals or quarter-by-quarter membership growth. In January's fourth-quarter update, these targets won't be there anymore.
Instead, Netflix's management suggests that investors should focus on the company's top-line revenue.
Source Fool.com
