LOS GATOS, Calif.—Netflix reported that its global streaming paid memberships grew to 223.09 million, up 4.5% or 2.41 million subs from a year earlier as both sub counts and revenue exceeded the company's guidance.
The Q3 2022 sub counts were also up from the 220.67 million global subs reported in Q2 2022 and reversed two quarters of subscriber declines in the first and second quarters of 2022 that hammered Netflix stock.
The sub growth easily beat the company’s 1.0 million forecast.
In U.S. and Canada, Netflix saw a slight increase of subs from 73.28 million in Q2 2022 to 73.39 million in Q3 2022, reversing two quarters of declines.
But the Q3 2022 sub counts for U.S. and Canada were still below 74.01 million reported a year ago in Q3 2021.
Revenue also increased by 6% in Q3 compared to a year earlier, driven the company said by a 5% increase in the average paid membership. But operating income fell to $1.5 billion from 1.8 billion a year ago in Q3 2021.
Even so, earnings per share came in at $3.10 a share, above the predictions of most analysts.
Shares rose in after hours trading on the news and was up 14% to $275 a share in after hours trading at 7:10 p.m. ET.
