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LOS ANGELES — Netflix on Thursday reported third-quarter results that topped both top and bottom lines as its advertising business continued to grow.
The streamer’s ad-level memberships jumped 35% quarter-over-quarter. The company is on track to launch the service in Canada in the next quarter and more broadly in 2025.
Although Netflix doesn’t expect advertising to become a primary growth driver until 2026, it noted that the advertising level accounted for more than 50% of signups during the third quarter in countries where it is available.
Shares rose about 5% in after-hours trading.
Here’s what Netflix reported for the period ending September 30:
- Earnings per share: $5.40 versus $5.12 expected by LSEG
- Income: $9.83 billion versus $9.77 billion expected by LSEG
- Paid subscriptions: 282.7 million versus 282.15 million expected, according to StreetAccount
Net income for the period was $2.36 billion, or $5.40 per share, up from $1.68 billion, or $3.73 per share, in the same period. quarter of the previous year. Revenue jumped 15% to $9.83 billion from $8.54 billion a year earlier.
The company said Thursday that it expects fourth-quarter revenue to reach $10.13 billion and earnings per share to be $4.23.
Netflix expects its full-year 2025 revenue to be between $43 billion and $44 billion, as it improves its core offering of series and films and invests in new initiatives such as advertising and games. Much of this revenue growth is expected to come from what the company called a “healthy increase in paid subscriptions.”
Netflix added 5.1 million subscribers during the quarter, more than the 4.5 million Wall Street expected, according to StreetAccount estimates. In total, the streaming service now has 282.7 million subscriptions across all its pricing tiers.
Starting in 2025, Netflix will no longer tell investors about its subscriber numbers, as it will now focus on revenue and other financial metrics as performance indicators.
The company touted new series such as “The Perfect Couple,” “Nobody Wants This” and “Tokyo Swindlers,” as well as returning seasons of “Emily in Paris” and “Cobra Kai,” as well as major films such than “Beverly Hills Cops: Axel”. F”, “Rebel Ridge” and “Officer Black Belt” as big audience hits.
Netflix is expected to launch a second season of the hit series “Squid Game” in the fourth quarter, alongside live sporting events such as a boxing match between Jake Paul and Mike Tyson as well as two National Football League games on Christmas Day.
Correction: This story has been updated to correct Netflix’s reported and estimated third-quarter revenue. The company reported $9.83 billion, compared to an expected $9.77 billion, according to LSEG.
