Everything you need to know: 【Netflix Q3 earnings summary】

16%+ highRising more than 16%Closed the trading on the 19th at $401.77.

Revenue:85.42Billion dollars (market estimate of $8.534 billion), compared to the same period last year.Increased by 7.8%.、Benefited from a rapid increase in memberships.Benefitted from a rapid increase in memberships.
- Adjusted EPS:3.73Dollars (market expectation $3.56), year-on-year comparison20% increase、Increased for two consecutive quarters。
● Net profit:16.77Billion dollars (market estimate of 1.582 billion dollars), year-on-year20% increase。
● Operating margin: 22.4％(Market estimate 22.1%), year-on-year3.1% increase。
- Number of paid subscribers: increased by 8.76 million compared to the end of the 4th to 6th months, with the largest contribution coming from the EMEA (European, Middle Eastern, and African) region, reaching a total of 0.247 billion members.8.76 millionpeople, with the largest increase in new customers in the EMEA (European, Middle Eastern, and African) region contributing, reaching a total of 0.247 billion members.0.247 billionpeople.

Strengthening measures for password sharing restrictions led to a rapid increase in new customers, and the introduction of the lowest priced plan with ads and shared plans was successful, resulting in a strong performance in the third quarter. In response to this, Netflix implemented price increases in some of its major markets. The company announced that starting from the 18th, it will increase monthly fees in the USA, UK, and France, raising the highest plan by $3 to $23 in the USA, and raising the basic plan by $2 to $12. Similar measures will be taken in the UK and France.

Amidst intensifying competition in the streaming business, Netflix's management indicated confidence in the future. In a letter to shareholders, they stated, "With high-quality content, global streaming distribution, and high customer satisfaction, Netflix holds a higher market share than competitors. According to Nielsen data, Netflix's TV usage rate in the US in September was 7.8%, the second highest after YouTube. We believe there is considerable room for growth by continuing to enhance the quality of our programs."

Some analysts believe that in order for Netflix to maximize revenue, they should enhance a traditional media strategy with ad-supported plans. Many customers are expected to choose ad-supported plans over the more expensive ad-free premium services.

In the guidance for the fourth quarter, the outlook for full-year free cash flow (FCF) was revised upwards from the previously estimated 5 billion dollars to 6.5 billion dollars, reflecting cost savings from the Hollywood strike. Revenue for the October-December period is expected to be 8.692 billion dollars, an 11% increase year-on-year, slightly below the analyst's estimate of 8.770 billion dollars.6.5 billion dollarsNetflix significantly rose by 12% after hours, with paid memberships increasing more than expected - U.S. individual stocks.