Netflix is back to growing after a nightmare year of losing subscribers
By Frank Pallotta, CNN BusinessUpdated: Tue, 18 Oct 2022 20:34:43 GMTSource: CNN BusinessAfter two quarters of bleeding subscribers, Netflix appears to be back on track — in a big way.The streaming co
By Frank Pallotta, CNN BusinessUpdated: Tue, 18 Oct 2022 20:34:43 GMT
Source: CNN Business
After two quarters of bleeding subscribers, Netflix appears to be back on track — in a big way.
The streaming company reported Tuesday that it notched 2.4 million subscribers in the third quarter of 2022 — a number that far exceeded expectations of 1 million subscribers. In more good news, it said it will likely add 4.5 million subscribers for the fourth quarter, which also is ahead of what investors were expecting.
In short, Netflix is seemingly back to growing after watching its stock and reputation take a hit all year due to subscriber losses. It currently has 223 million subscribers worldwide.
The news sent the company's shares up 13% on Tuesday in after-hours trading.
Netflix's third quarter profit came in at $1.3 billion, down from $1.4 billion in the year-earlier quarter. Revenue was up roughly 6% year over year, to $7.9 billion. Both metrics were ahead of what the company projected for the quarter.
"After a challenging first half, we believe we're on a path to reaccelerate growth," the company said in its letter to shareholders on Tuesday. "The key is pleasing members. It's why we've always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us."
This is a developing story.
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