Netflix reported robust third-quarter results, with net income reaching $2.36 billion, or $5.40 per share, a significant increase from $1.68 billion, or $3.73 per share, in the prior year. Total revenue for the quarter climbed 15% year-over-year to $9.83 billion, surpassing analyst estimates of $9.77 billion. This strong financial performance indicates effective monetization strategies and content engagement.
The streaming giant added 5.1 million new subscribers during the quarter, bringing its total global memberships to 282.7 million, exceeding Wall Street's projections of 4.5 million users. A key driver of this growth was the ad-supported plan, which accounted for more than 50% of new sign-ups in countries where it was available and saw its membership jump 35% quarter-over-quarter. This highlights the success of Netflix's diversified pricing strategy.
Looking ahead, Netflix provided an optimistic outlook, forecasting fourth-quarter revenue of $10.13 billion and earnings per share of $4.23. The company also issued full-year 2025 revenue guidance between $43 billion and $44 billion, representing 11% to 13% growth from its expected 2024 revenue of $38.9 billion. Starting in 2025, Netflix will shift its focus from reporting quarterly subscriber numbers to emphasizing revenue and other financial metrics as primary performance indicators.
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