Netflix Beats Market Expectations for Q3 Revenue and Net Profit (Update)

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[Asia Economy Reporter Yujin Cho] U.S. online video service (OTT) Netflix recorded better-than-expected strong performance in the third quarter.

On the 18th (local time), Netflix announced its third-quarter earnings, reporting revenue of $7.926 billion, up 5.9% year-over-year, and operating profit of $1.533 billion, down 12.64%.

Net income was $1.398 billion, similar to the same period last year ($1.449 billion). Earnings per share were $3.10.

Both revenue and earnings per share exceeded Wall Street expectations with strong results.

The number of new paid subscribers in the third quarter was 2.41 million, more than double the forecast of 1.07 million compiled by financial information firm Refinitiv.

Netflix stated that the total number of new paid subscribers for the year is expected to reach 4.5 million, surpassing market expectations of 4.2 million.

In a shareholder letter, Netflix emphasized, "We are trying various changes to accelerate growth," adding, "We are strengthening competitiveness by producing original content and releasing episodes all at once to increase story immersion."

It also highlighted Netflix's comparative advantage in the increasingly competitive OTT market.

Netflix estimated, "While competing OTT companies are making huge investments to attract new subscribers, building a successful business is not easy. Netflix is expected to post operating profits of $5 billion to $6 billion for the year, whereas competitors will record operating losses exceeding $10 billion."

Following the better-than-expected strong performance, Netflix's stock price surged nearly 15% in after-hours trading.

This content was produced with the assistance of AI translation services.