Netflix has beaten all expectations surrounding its quarter three results, with its revenue and subscription numbers both surpassing previous predictions.
The streaming giant has seen its revenue surpass two billion for the first time, reaching USD$2.2bn, which is an increase of 36% year on year. Its membership base also grew to 86.7m globally.
The business credits these results to its highly sort after original content, with shows such as Stranger Things and Narcos season two generating a lot of buzz this quarter.
Since posting its results, Netflix's shares have rocketed up 19% to USD$118.7. Previously, the stock had fallen 13% this year as the streaming video giant has struggled to keep up the pace of subscriber growth, The Wall Street Journal reported.
The results are a reversal of what happened in quarter two, with the business previously missing its own subscriber growth predictions both in the US and internationally.
This quarter Netflix added 0.4 million members in the US versus its forecast of 0.3 million and 3.2 million members internationally versus its forecast of 2.0 million. The international market is also a big revenue diver for the business, with 40% of the $2.2bn in revenue being generated abroad. Operating income amounted to $106 million, compared with its $64m estimate and net income was $52m compared to a forecast of $22m.
Commenting on competition, Netflix noted that it's reading for Amazon Prime to go global, however it adds that despite many players in the space, Netflix remains on top.
“We face immense competition for consumer screen time. Despite video gaming getting better, video messaging and sharing improving, MVPD UI enhancements, YouTube growth, more SVOD services, and other screen time competitors, Netflix continues to win both time and affection.
“We presume that Amazon Prime Video will become as global as YouTube and Netflix this fall with the launch of the Jeremy Clarkson show. Our challenge is to continue to improve our service and content so that we better meet consumer desires. Total screen time is quite large and growing as technology and content improve globally.”
While it's been a bumper quarter for the streaming player, the business did flag that coming inot next year the results may not be as rosy due to facing tough international net adds in Q117 because of the initial membership surge in Q116 tied to the launch of 130 additional territories.
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