Netflix beat Wall Street expectations on both earnings and revenue. The company added 35 million paid subscribers on a year-over-year basis, sending the streaming giant’s stock higher.
KEY FACTS
- Netflix reported earnings of $5.40 per share and revenue of $9.82 billion in the third quarter of 2024 ended Sept. 30, beating analysts’ consensus estimates of $5.12 and $9.77 billion, respectively, according to FactSet.
- The company saw a roughly 14% jump in global subscribers to 282 million from 247 million in the third quarter of last year – although subscriber growth slowed as the platform added just over 5 million paid members last quarter, compared to 8 million in the second quarter of 2024 and 8.76 million in the third quarter of 2023.
- Revenues are up 15% year-on-year.
- After months of strong subscriber growth (largely stemming from the introduction of a cheaper advertising tier in May and the implementation of password-sharing measures), the stock hit a record high of $736 last Friday, surpassing its previous high of $733. placed just the day before.
KEY STORY
Analysts had expected the price hike to support strong revenue growth as the explosion in subscriber growth from a crackdown on password sharing began to wane. Netflix’s last major price increase in the US was in October 2023, when it raised the “Basic” plan to $11.99 per month and the “Premium” plan to $22.99 per month. Netflix Originals continued to drive engagement in the third quarter with shows like Emily in Paris Season 4, The Perfect Couple, according to a UBS analyst report.
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