Netflix (NASDAQ: NFLX) shares were surging after the company released its latest earnings report, and traded up 9.9% after hours last night.
Following a disappointing result in its second-quarter update in July, the streaming champ bounced back with 6.8 million net subscriber additions in the third quarter, nearly matching its own guidance for 7 million new subscribers. Revenue of $5.24 billion was essentially in line with the analyst consensus at $5.25 billion, and the market seemed particularly delighted with the strong bottom-line result -- earnings per share reached $1.47 due to favorable timing of content and marketing spending, beating estimates at $1.05.
While the third-quarter numbers and fourth-quarter guidance were enough to assuage investors nervous about the Apple TV+ and Disney+ launches just weeks away, there were several key data points and comments in management's letter to shareholders that investors should be aware of.