Netflix Exceeds Earnings Expectations as Revenue Growth Remains Strong
The company recorded earnings per share of $0.87 for the three-month period ending September 30, surpassing analysts' forecasts.
Revenue increased by nearly 12% compared with the same period last year, reaching $12.87 billion. The growth was supported by an expanding subscriber base and higher subscription fees introduced in March.
Netflix's net profit rose to $3.66 billion, up from $2.55 billion a year earlier. Earnings per share also increased from $0.59 during the corresponding period last year. The company attributed part of the improvement in profitability to the timing of certain expenses.
The streaming provider also reported that subscribers responded to its latest price adjustments in line with the company's expectations and the reactions observed during previous increases.
Looking ahead, Netflix anticipates fourth-quarter revenue of $13.44 billion, representing annual growth of more than 11%. The company expects subscriber gains, pricing changes and advertising revenue to support its performance.
Netflix also refined its revenue projection for the full year, setting its latest estimate at $51.1 billion, equivalent to 13% annual growth. The updated forecast is narrower than its previous outlook of $51 billion to $51.4 billion.
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