Netflix surpasses all expectations, adding 2.41 million subscribers

The firm reported better-than-expected results on the top and bottom lines, which caused Netflix shares to soar more than 14% after the bell on Tuesday. Additionally, the streamer announced a 2.41 million net worldwide subscriber increase, more than double the additions the firm had anticipated a quarter earlier.

Here are the results:

  • According to Refinitiv, EPS was $3.10 instead of $2.13 per share.
  • According to a Refinitiv poll, revenue was $7.93 billion as opposed to $7.837 billion.
  • StreetAccount believes that 2.41 million additional worldwide paid net customers are anticipated as opposed to 1.09 million additional subscribers.
Netflix will stop providing forecasts for its premium memberships as of the upcoming quarter, although it will still reveal those figures when it releases its quarterly profits.

Due in large part to currency headwinds abroad, Netflix predicted it will add 4.5 million customers during the first quarter of its fiscal year and stated it anticipates revenue of $7.8 billion.

The streamer expressed its "great optimism" on its new advertising venture. It does not anticipate that the new tier will materially improve its fourth-quarter performance, but it does anticipate that membership will increase gradually over time. Based on its forthcoming content schedule and the regular seasonality that occurs over the final three months of the year, it currently expects subscriber growth.

The third quarter's gains were credited in part to popular television series and films including "Monster: The Jeffrey Dahmer Story," "Stranger Things" season 4, "The Gray Man," and "Purple Hearts." It also hinted at the arrival of its brand-new, more affordable, ad-supported plan, which will go live in 12 nations in November.

The business stated in a statement on Tuesday that it "believes we're on a path to reaccelerate growth" after a difficult first half. The secret is winning over members. That is why we have consistently concentrated on outperforming the opposition for daily watching. When our members enjoy our television shows and films, they recommend them to their friends, who then watch, subscribe, and remain with us.

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