Netflix brushed off recent share price wobbles with a strong Q3 result that topped the company's own forecasts.
Netflix reported adding 6.96 million new subscribers in Q3, including 1.09 million coming from the U.S, beating the company's own projection of 5 million, and market analyst consensus of 5.32 million.
Revenue wise, Netflix generated $403 million in net income on revenue of nearly $4 billion in the third quarter, up from $130 million on $3 billion in the same quarter least year.
Netflix is still investing heavily in content, with third-party streaming content obligations topping $18.6 billion this year so far, with free cash flow expected to be negative-$3 billion for 2018.
Netflix missed its Q2 forecasts, which saw shares tumble. Shares took a further dive earlier in the month on concerns regarding the company's long term earnings. However, the better than expected Q3 results helped the company's share surge in after-hours trading, with shares surging almost 15% before dropping back down to record an 11% rise.
Netflix is forecasting a good set of Q4 results, with 9.4 million new members being added.
Netflix CEO Reed Hastings was thrilled with the result.
"Our broad slate of original programming helped drive a solid quarter of growth," wrote Reed Hastings in a letter to shareholders. "We're thrilled to be growing Internet entertainment across the globe."
[via Media Play News, MarketWatch]