On Wednesday, Netflix Inc (NASDAQ: NFLX) smashed estimates with its third quarter results that were fueled by a strong growth in subscribers, its biggest quarterly growth since 2020’s second quarter. Its international content production made it resilient to the ongoing strike in Hollywood and it attracted new audiences by licensing content from its rivals such as Comcast Corporation (NASDAQ: CMCSA). Netflix shares rose almost 14% upon results.
Quarterly Highlights
Despite strikes that paralyzed the entertainment industry and halted Netflix’s U.S. content production, the streaming giant added 8.8 million subscribers, which is its best performance since the peak of the pandemic. Netflix lured in new audiences thanks to its overseas production, as well as by licensing content such as Suits it got from Comcast. Third quarter revenue grew 7.8% YoY to $8.542 billion with net income rising from 2022’s comparable quarter when Netflix earned$1.677 billion to $1.398 billion. Earnings of $3.73 per share topped Wall Street's expectation of $3.49, according to Reuters.
During the quarter, Netflix cracked down on password sharing, limiting the use of ...