Netflix gained 5.1 million subscribers in the third quarter, surpassing Wall Street estimates by more than one million users, the company reported in its financial results report this Thursday.
The company’s shares were volatile in after-hours trading.
Investors expected Netflix to add 4 million subscribers between July and September, according to analyst estimates compiled by LSEG.
New programming during the period included the thriller series “The Perfect Couple” and the romantic comedy “Nobody Wants This.”
Net profits grew 41% annually to $2,364 million.
Diluted earnings per share came in at $5.40, above the consensus estimate of $5.12.
Read: Netflix would report lower subscriber growth; its growth remains central: analysts
Revenue grew 15% annually to $9.825 million, slightly ahead of the forecast of $9.769 million.
Netflix has tried to divert investors’ attention from subscriber numbers to other metrics, such as revenue growth and profit margins.
The company said its operating margin reached 30% in the quarter, up from 22% a year earlier.
“We have delivered on our plan to re-accelerate our business and are very pleased to finish the year strong with a great fourth quarter,” the company said in a letter to shareholders.
Read: These are the unmissable Netflix premieres for October
Netflix is working to boost revenue from its new ad-supported plans, but has said it doesn’t expect advertising to become a primary driver of growth until 2026.
In the quarter, Netflix’s ad-supported service accounted for more than 50% of subscriptions in the countries where it was available.
With information from Reuters
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