Netflix shares soared 14% in premarket trading Wednesday after the streaming behemoth’s third-quarter earnings beat Wall Street’s revenue and profit forecasts.
The streaming platform added 2.4 million subscribers globally, it said in its earnings report published after the market close Tuesday. That growth in its base comes after two straight quarters of plunges.
Netflix owes its success to the release of a plethora of popular shows in the period, including “Monster: The Jeffrey Dahmer Story” and the fourth season of “Stranger Things.”
The online-video service posted a 5.9% increase in revenue to $7.9 billion, but higher operating costs meant its net income slipped 3.5% to $1.4 billion. Analysts polled by Refinitiv had expected $7.8 billion and $959 million, respectively.
Netflix’s quarterly subscriber growth came in more than double its forecast of 1 million after it lost 1.2 million members in the first six months of 2022. The streaming giant ended the period with 223 million subscribers and guided towards another 4.5 million subscriber additions this quarter.