Netflix (NASDAQ: NFLX) stocks skyrocketed over 14% after market close Tuesday, following better than expected earnings results. Additionally, the company disclosed that its subscriber count had grown by 2.41 Million people, more than doubling its forecast for the quarter.
The subscription streaming service reported earnings of USD3.10 per share, compared to the expected USD2.13 a share. Revenue amounted to USD7.93 Billion, higher than analysts’ anticipated USD7.837 Billion, according to Refinitiv survey.
In a note to shareholders, the company said, “After a challenging first half, we believe we’re on a path to reaccelerate growth. The key is pleasing members. It’s why we’ve always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us.
Many believe the positive results stem from popular TV and film hits within the quarter, such as, “Monster: The Jeffrey Dahmer Story,” “Stranger Things S4,” “Extraordinary Attorney Woo,” “The Gray Man,” and “Purple Hearts.”
The company also noted “Our competitors are investing heavily to drive subscribers and engagement, but building a large, successful streaming business is hard – we estimate they are all losing money, with combined 2022 operating losses well over $10 billion, vs. Netflix’s $5 to $6 billion annual operating profit.”
Starting next quarter, the company has opted not to provide guidance for its paid memberships but will continue to report those metrics within its quarterly earnings release.