Investing.com -- Netflix reported upbeat guidance Thursday following third-quarter results that topped Wall Street expectations as the streaming giant added more subscribers than expected in quarter.
Netflix Inc (NASDAQ:NFLX) was up more than 4% in recent afterhours trading following the results.
Netflix reported earnings of $5.40 a share on revenue of $9.83B, topping estimates for earnings of $5.12 a share on revenue of $9.77M.
The streaming giant added in 5.07M users in Q3, well above the 4.54M estimated, underpinned by a strong content slate during the quarter, with global streaming paid membership rising 14.4% to 282.72M ahead of its estimates of about 282.2M.
The stronger-than-expected net ads in the quarter were underpinned by a strong content slate.
"We’ve delivered a string of hits this quarter, including new series like The Perfect Couple, Nobody Wants This and Tokyo Swindlers, returning favorites like Emily in Paris and Cobra Kai and big films like Beverly Hills Cop: Axel F, Rebel Ridge and Officer Black Belt," the company said.
Ads membership also improved, up 35% quarter on quarter, and the ad tech platform is on track to launch in Canada in Q4 and more broadly in 2025, the company added.
For Q4, earnings was forecast to come in at $4.23 per share on revenue of $10.13B, beating analyst estimates of 3.89 on revenue of $10.04B.