The stock market saw a 16% increase in the price of Netflix’s shares on Thursday.
According to The Times, this came after the business announced a sharp increase in subscriptions for Q3 2023.
In its presentation of its quarterly financial report on Wednesday, Netflix said that the third quarter of 2023 saw revenue of $8.54 billion, an increase of 7.8% over the same period the previous year.
The increase in subscriptions was responsible for the revenue gain and outperformed Wall Street experts’ predictions.
In contrast to Street Account’s prediction of 5.49 million new memberships, the company actually recorded 8.76 million in Q3 2023.
The company stated that the increase in memberships was brought on by a 70% increase in ad-based membership from Q2 2023.
Currently, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, the United Kingdom, and the United States are among the countries that provide the advertisements plan.
Netflix’s share price increased on Thursday by 16.1% ($55.58) to close at $401.77 on Nasdaq following the publication of the revenue data.
The business expects revenue for the fourth quarter of 2023 to rise 10.7% YoY to $8.69 billion.
However, they expect the operating margin to decline to 13.3%, therefore they are projecting an operating margin of 20% for FY 2023.
They say that they anticipate Q4 2023 new subscriber additions to be comparable to Q3 2023 numbers.
It has also been noted that the Hollywood writers’ and actors’ strike had no negative financial effects on Netflix.
The agreements would, however, result in greater content creation costs, it is underlined.
Due to a lack of information on the platform’s operations, Netflix’s growth in Nigeria cannot be supported.
The Blackbook, one of its Nollywood originals, made history this year by being the first Nigerian film to ever reach the top place on Netflix globally. It received 5.6 million views and 11.6 million watch hours in the first week after release.
Details of Netflix’s Q3 2023 Performance
Revenue: $8.54 billion, +7.8% YoY
Operating Margin: 22.4%, +3.1% YoY
Net Income: $1.677 billion, +19.96%
Earnings per Share: $3.73, +20.3% YoY
Paid Subscribers Growth: 8.76 million, +263.5% YoY
Global Paid Streaming Membership: 247.15 million, +10.78%
