On Thursday, Netflix released its third-quarter earnings, which surpassed analysts’ expectations as its paid subscribers rose.
Despite better Q3 results, the streaming platform’s stock declined by -2.04% to $687.65 apiece. However, the company rallied significantly after hours, surging by 5.18% to $723.30 per stock.
Furthermore, Netflix’s earnings per share climbed to $5.40, higher than analysts’ $5.12 expectations and the previous quarter’s $4.88 data.
The company’s revenue was a staggering $9.82 billion, better than the $9.77 billion consensus and last quarter’s $9.56 billion.
Furthermore, the streaming giant added 5.07 million users in Q3, surpassing the forecast of 4.54 million, underpinned by solid content features during the quarter.
Meanwhile, the platform revealed that its average paid membership rose by 15.00% year over year (YoY), with paid net additions in Q3 reaching 5.10 million, compared to 8.80 million in the same quarter last year.
Moreover, Netflix advertisement subscriptions increased by 35.00% quarterly. The firm’s in-house debut-party advertising tech app is set to launch in Canada in November, with a broader rollout planned for all ad nations next year.
On the other hand, the platform earnings for Q4 come in at $4.23 per share on profit of $10.13 billion, which tops experts’ estimates of $3.89 apiece on revenue of $10.04 billion.
Movies and Series Content Slate Teases by Netflix
Netflix has pledged to produce a slate of content lineup for later in 2024 and next year, including Squid Game 2, a final season of Arcane, and an animated Witcher movie.
Furthermore, the streaming platform revealed that its subscribers use its service for an average of two hours daily.
Meanwhile, the company revealed that it currently logs under 10.00% of total TV usage in its biggest demographics. Nevertheless, it hopes its share growth will vastly increase if it consistently streams more quality TV shows and movies.
Netflix co-CEO Greg Peters also disclosed that the firm plans to launch the overhaul, which it began testing in the summer.