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Netflix Beats Earnings Forecast for Q3 2022 With 2.4 Million New Subscribers

Industry: Entertainment
Current: Company Performance

Netflix share price rose more than 14% on Tuesday after the company reported better-than-expected results
The streamer also reported an increase of 2.41 million net global subscribers, more than double of what was expected a quarter earlier
A total number of 1.43 million new Netflix subscribers were added in Asia-Pacific during the quarter, making up the majority of Netflix's net subscriber growth

Netflix Share Prices Soar

Netflix share prices soared more than 14% as the company reported better-than-expected results on the top line and bottom line on October 18, 2022. Additionally, the streamer announced an increase of 2.41 million net global subscribers, more than double the additions the firm had expected a quarter earlier.

The number of paid memberships at the end of each quarterly period of 2021 and 2022 increased significantly in the US and Canada (UCAN), and the Europe, Middle East and Africa (EMEA), Latin America (LATAM), and Asia Pacific (APAC) countries. EMEA led with 73,534 paid memberships, followed by UCAN (73, 387), LATAM (39,936) and APAC (36, 228), according to GlobalData.

For Q3 2022, the total revenue and net profit of Netflix was $7,925.59 million and $1,398.24 million, respectively. Netflix will begin a crackdown on password-sharing in 2023 to force users who have been using borrowed accounts to create their own. The company will also allow users who share accounts to set up sub-accounts so that they can pay for friends or family members to use their accounts. In the third quarter of 2022, the total revenue and net profit of Netflix decreased marginally by 1% and 3%, respectively, over that in the second quarter of 2022, according to GlobalData.

During the third quarter of 2022, Asia-Pacific accounted for 1.43 million additional customers of Netflix, which constituted the majority of the company's net subscriber increase. With just 100,000 net customers added, the Netflix area of the US and Canada experienced the slowest growth. From the fourth quarter of 2022, Netflix will stop providing guidance for paid memberships but will still reveal those figures when it releases its quarterly earnings.

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