Netflix Co-CEO Hastings: 'Thank God We're Done With Shrinking Neighborhoods'

Netflix Inc NFLX co-CEO Reed Hastings expressed relief with the streaming giant announcing its streak of declining quarterly numbers on Tuesday.

What happened: "Thank goodness we're done with the down quarters," Hastings said during the company's third-quarter earnings call.

It's "a big deal to get back to positivity".

Regarding the company's guidance for the fourth quarter, Hastings said it was "reasonable" but not "fantastic".

Co-CEO Ted Sarandos said of Netflix's $17 billion annual content spend that the streaming company is now getting returns on investment.

"Reach and scale as well as reach and cadence of visits are improving," Sarandos said.

"I feel better and better about this $17 billion in content spend because what we need to do is get better and better and get more impact than anyone else per billion dollars spent."

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Why it matters: Sarandos said on the earnings call that he believes spending is currently at the "right level" and that they will "revisit that number" at as business revenue increases.

Netflix reported third-quarter revenue of $7.93 billion, beating a Wall Street estimate of $7.84 billion on Tuesday. Earnings per share were $3.10, versus an estimate of $2.13, according to Benzinga Pro data.

The company posted fourth-quarter revenue of $7.8 billion and earnings per share of 36 cents. It seeks to add 4.5 million new paying subscribers over the period.

Price Action: On Tuesday, Netflix shares jumped 14.3% in after-hours trading to $275.40 after closing down 1.7% during the regular session at $240.86, according to Benzinga Pro data.< /p>

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