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LOS ANGELES – Netflix posted third quarter earnings that beat the top and bottom lines as the advertising business continues to grow.
The streamer’s ad-level membership grew by 35% every quarter. The company plans to launch the service in Canada in the coming quarters and more in 2025.
Here’s what Netflix reported for the period ending September 30:
- Earnings per share: $5.40, vs $5.12 expected by LSEG
- result: $9.83 billion, vs $9.77 billion expected by LSEG
- Paid membership: 282.7 million, vs. 282.15 million expected, according to StreetAccount
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 currently has 282.7 million members at all price levels.
Starting in 2025, Netflix will no longer update investors on subscriber numbers as it focuses on revenue and other financial metrics as performance indicators.
The company noted on Thursday that it expects revenue in the fourth quarter to reach $10.13 billion and earnings per share to be $4.23.
Netflix projects revenue for 2025 to be between $43 billion and $44 billion, as it increases its core series and movie offerings and invests in new initiatives like advertising and games. Much of the revenue growth is expected to come from what is called “a healthy increase in paying members.”
The company shows new shows like “The Perfect Couple,” “Nobody Wants This” and “Tokyo Swindlers” along with returning seasons of “Emily in Paris” and “Cobra Kai” as well as big movies like “Beverly Hills Cops: Axel F , ” “Rebel Ridge” and “Officer Black Belt” were breakout viewership hits.
Netflix is ​​set to release the second season of its hit show “The Squid Game” in the fourth quarter along with live sports events like a boxing match between Jake Paul and Mike Tyson as well as two National Football League games on Christmas Day.
This is a news story. Please check back for updates.
Correction: This story has been updated to correct the reported and estimated revenue for Netflix’s third quarter. The company reported $9.83 billion compared to $9.77 billion expected, according to LSEG.
