In this photo illustration, the Netflix logo in the App Store is displayed on a smartphone screen.
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Netflix shares shot up more than 14% after the bell Tuesday as the company posted better-than-expected results on the top and bottom lines. The streamer also reported the addition of 2.41 million net worldwide subscribers, more than doubling the additions the company had expected a quarter ago.
Here are the results:
EPS: $3.10 vs. $2.13 per share, according to Refinitiv. Revenue: $7.93 billion vs. $7.837 billion, according to Refinitiv survey. Expected worldwide paid net subscribers: addition of 2.41 million subscribers versus an addition of 1.09 million subscribers, according to StreetAccount estimates.
Most of Netflix’s net subscriber growth during the quarter came from the Asia-Pacific region, accounting for 1.43 million subscribers. The US-Canada had the lowest growth outside the Netflix regions, contributing only 100,000 net subscribers.
Starting next quarter, Netflix will no longer provide guidelines for its paid subscriptions, but will continue to report these numbers during the publication of its quarterly results.
Netflix forecasted it would add 4.5 million subscribers during its fiscal first quarter and said it expects $7.8 billion in revenue, largely due to foreign exchange pressures.
The streamer said it was “very optimistic” about its new advertising business. While it does not expect the new level to make a material contribution to its fourth quarter results, it expects membership to grow gradually over time. The current forecast for subscriber growth is based on upcoming content and typical seasonality that occurs during the last three months of the year.
The company touted hit shows and movies like “Monster: The Jeffrey Dahmer Story,” “Stranger Things” season four, “The Gray Man” and “Purple Hearts” as hits that helped move the needle during the third quarter. It also teased the addition of its new, lower-cost ad-supported plan, which will launch in 12 countries in November.
“After a challenging first half, we believe we are on track to accelerate growth again,” the company said in a statement on Tuesday. “The most important thing is to satisfy the members. That’s why we have always focused on winning the competition to watch every day. When our series and movies excite our members, they tell their friends, and then more people watch , join us and stay with us.”
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