Netflix grows subscribers by 5.1m in Q3, beating estimates
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The news: Netflix reported global subscriber growth of 5.1 million during the September quarter, beating Wall Street estimates.
The numbers: The global streaming platform beat consensus forecasts by more than 1 million subscribers, according to LSEG data.
Diluted earnings per share came to USD5.40 ($8.06), above the consensus forecast of USD5.12. Revenue grew 15% year on year to $9.83 billion, just ahead of the $9.77 billion consensus forecast.
The company said its operating margin reached 30% in the quarter, compared with 22% a year earlier.
The context: Netflix said that it continues to build its advertising business but does not expect ads to become a primary driver of revenue growth until 2026. In the September quarter, Netflix's ad-supported service accounted for more than 50% of sign-ups in countries where it was available.
Netflix noted that it delivered on its plan to reaccelerate the business during the quarter, and flagged a strong end to the year for new content, including Squid Game season two, a live fight between YouTuber Jake Paul and former boxing champion Mike Tyson, and its first two live NFL games in December.
What they said: "We've delivered on our plan to reaccelerate our business, and we're excited to finish the year strong with a great Q4 slate," the company said in a letter to shareholders.
The sources: Netflix earnings release, Reuters
