Netflix co-founder Reed Hastings was present at the red carpet event for the company’s launch at Palazzo Del Ghiaccio in Milan, Italy, on October 22, 2015.
On Friday, Netflix shares experienced an 11% increase following the release of its third-quarter earnings, which exceeded market expectations. The company announced earnings per share of $5.40 for the quarter that ended on September 30, outperforming the anticipated $5.12 according to LSEG consensus estimates. Additionally, Netflix reported revenue of $9.83 billion, surpassing analysts’ predictions of $9.77 billion.
A significant highlight from the report was the growth of Netflix’s ad-supported membership tier, which saw a 35% increase from the previous quarter. Although the company does not foresee advertising as its main driver of growth until 2026, it indicated that the ad-supported tier contributed to over 50% of new sign-ups in regions where it is offered during the third quarter.
Looking ahead, Netflix provided an optimistic outlook for the upcoming December quarter, projecting a revenue increase of 14.7% to $10.13 billion. For the year 2025, Netflix forecasted revenue between $43 billion and $44 billion, suggesting a growth rate of 11% to 13% compared to its expected revenue of $38.9 billion for 2024.
Analysts from Citi commented that Netflix’s fourth-quarter outlook was above market expectations, while its forecasts for 2025 were largely in line with consensus estimates.