Investors expected Netflix to add four million subscribers between July and September. New programming during the period included the thriller series “The Perfect Couple” and the romantic comedy “Nobody Wants This.”
The pioneer of streaming video Netflix got 5.1 million of subscribers in the third quartersurpassing Wall Street estimates in more than a million usersthe company reported in its earnings report on Thursday.
The Netflix shares soared almost 5% to $721.40 in post-closing operations.
Investors expected Netflix to add 4 million subscribers between July and Septemberaccording to analyst estimates compiled by LSEG. New programming during the period included the thriller series “The perfect couple” and the romantic comedy “Nobody wants this”, Reuters reported.
Diluted earnings per share stood at $5.40, above the forecast $5.12 consensus. Revenue reached $9.825 million, slightly above the forecast of $9.769 million.
Netflix: revenue growth and profit margins
Netflix tried to divert investors’ attention from subscriber numbers to other metrics, such as revenue growth and profit margins. The company said its operating margin reached 30% in the quartercompared to 22% the previous year.
“We have fulfilled our plan to re-accelerate our business and we are very happy to finish the year strong with a great fourth quarter”the company said in a letter to shareholders.
Netflix is working to boost revenue from its new ad-supported plans, but has said it doesn’t expect advertising to become a primary driver of growth until 2026.
In the September quarter, the ad-supported Netflix service It represented more than 50% of subscriptions in the countries where it was available.
Source: Ambito
