On Thursday, Netflix published its earnings report for the third quarter. Contrary to market speculation, the online streaming giant saw the greatest success from advertising, with ad-tier memberships jumping 35% quarter over quarter. Netflix amassed a net income of $2.36 billion in Q3, or $5.40 per share, compared to $1.68 billion, or $3.73 per share, in last year’s third quarter.
These unexpected numbers from advertising led Netflix to forecast $10.13 billion in Q4, with earnings per share to be $4.23. This optimism has led to revenue forecasts for 2025 to range between $43 billion and $44 billion, driven by enhancements to its core series and film offerings and investments in new initiatives like advertising and gaming. According to the earnings report, revenue climbed by 15% to $9.83 billion from $8.54 billion in 2023.
In addition to celebrating promising ad-tier revenue, Netflix added 5.1 million subscribers in the third quarter of this year, surpassing Wall Street’s conservative projection of 4.5 million, according to StreetAccount estimates. At present, the online streaming service boasts 282.7 million memberships across different pricing brackets. Starting in 2025, Netflix will no longer furnish subscriber counts to investors. This move underscores Netflix’s transition to alternative revenue streams and the use of other performance metrics to determine the overall success and health of the company.
