The streamer reported diluted earnings of $3.73 per share on revenue of $8.5 billion
Shares of Netflix jumped 12% in after-hours trading on Wednesday after the company reported net income of $1.67 billion, or diluted earnings of $3.73 per share, and total revenue of $8.5 billion for its third quarter of 2023.
The streaming behemoth added 8.76 million subscribers during the quarter for a total of 247.15 million globally.
Analysts surveyed by Zacks Investment Research were expecting earnings of $3.46 per share on revenue of $8.53 billion.
Revenue in the United States and Canada was flat year over year at $3.73 billion. Meanwhile, revenue grew 2% year over year to $2.69 billion in the Europe, Middle East and Africa region and 3.3% year over year to $1.14 billion in Latin America, but fell 9% year over year to $948 million in the Asia-Pacific region.
Average revenue per user came in at $16.29 in the U.S. and Canada, $10.98 in the EMEA region, $8.85 in Latin America and $7.62 in the APAC region.
Netflix reported operating income of $1.9 billion, up 25% year over year, and an operating margin of 22.4%. It also generated $2 billion in net cash during the quarter.
Netflix’s password sharing crackdown on an estimated 100 million households globally, including 30 million in the U.S. and Canada, has officially launched in every region the company operates in.
“The cancel reaction continues to be low, exceeding our expectations, and
borrower households converting into full paying memberships are demonstrating healthy retention,” the company added. “As a result, we’re revenue positive in every region when accounting for additional spin off accounts and extra
members, churn and changes to our plan mix.”
Moving forward, Netflix said it would continue to refine its strategy to convert additional borrower households into either full paying or extra members over the next several quarters.
Additionally, the company has adjusted its subscription prices in the U.S., U.K. and France. In the U.S., the ad-free basic tier will cost $11.99 per month and the premium tier will cost $22.99 per month, while pricing for the $6.99 per month ad-supported tier and $15.49 per month standard plan will remain the same.
