Netflix Inc (NASDAQ: NFLX) reported third-quarter financial results after the close. Here's a look at the key metrics for the quarter.
Q3 Earnings: Netflix said third-quarter revenue increased 7.8% year-over-year to $8.54 billion, which beat the consensus estimate of $8.53 billion, according to Benzinga Pro.
The company reported quarterly earnings of $3.73 per share, which beat the consensus estimate of $3.49, up from $3.10 in the same period last year.
Netflix said its better-than-expected results were due to higher-than-expected member growth. Paid net adds came in at 8.76 million, up from 2.4 million in the prior quarter, driven by the rollout of paid sharing, strong programming, and the ongoing expansion of streaming globally. Netflix ended the quarter with 247.15 million global paid subscribers, up 10.8% year-over-year.
Netflix said its ad tier continues to grow, with memberships up almost 70% on a quarter-over-quarter basis. The company also highlighted the repurchase of $2.5 billion worth of its shares in the quarter, as well as a buyback authorization increase of $10 billion.
"In addition to building engagement by creating movies and series that members will love, we're also focused on improving monetization through a combination of paid sharing, scaling our ads business and increased sophistication around our pricing and plans," the company said in a letter to shareholders.
"We're optimistic about our prospects and the future of entertainment ... we've shown that with discipline and a focus on the long term, you can build a strong, sustainable streaming business."
Outlook: Netflix expects fourth-quarter revenue of $8.692 million versus estimates of $8.77 billion. Fourth-quarter earnings are expected to come in at $2.15 per share, in line with analyst expectations.
Netflix sees full-year 2023 free cash flow of approximately $6.5 billion, up from a previous forecast of at least $5 billion. The company expects operating margins of 20% for the full year versus its prior outlook of 18% to 20%.
Management will hold a conference call to discuss these results at 6 p.m. ET.
NFLX Price Action: Netflix shares were up about 17% year-to-date heading into the print. The stock was up 11% after hours at $384.42 at the time of publication, according to Benzinga Pro.