Friday morning, Netflix’s stock surged 10% as the video streaming behemoth revealed third-quarter sales and profitability that above forecasts.
For the three-month period ending September 30, Netflix announced earnings per share of $5.40, exceeding the $5.12 LSEG consensus estimate.
Revenue above experts’ projections as well, coming in at $9.83 billion as opposed to $9.77 billion.
It’s important to note that Netflix’s ad-supported membership tier saw a 35% increase from quarter to quarter. Although it doesn’t anticipate that advertisements will be its main source of growth until 2026, More than 50% of new members in the countries where it is accessible signed up through the ad tier.
With a positive prognosis for the December quarter, Netflix also predicted that its fourth-quarter revenue would increase 14.7% to $10.13 billion.
It projects revenue of $43 billion to $44 billion for 2025, representing an 11% to 13% increase over its projected $38.9 billion in 2024.
Source (CNBC)
