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LOS ANGELES — In what can only be described as a financial plot twist worthy of a Netflix series, Netflix announced third-quarter earnings on Thursday that not only beat expectations, but also made everyone wonder why the financial auditor wasn’t on cameo.
The streaming giant reported that its ad-tier memberships surged by a staggering 35% quarter over quarter. It seems even couch-potatoes are getting into the ad game—maybe they felt left out watching commercials, so they decided to sign up for them instead. In a plot twist that would make M. Night Shyamalan proud, Netflix plans to roll this service out in Canada soon (because what’s more Canadian than watching ads while enjoying poutine?).
Even though Netflix doesn’t expect its advertising to be the main character in this financial drama until 2026, they did reveal that ads are making such a splash that they accounted for more than 50% of sign-ups in their ad-tier countries. Apparently, people have decided that seeing an ad for a new vacuum cleaner while trying to binge-watch “The Perfect Couple” is just part of the experience.
In the aftermarket trading world, shares jumped nearly 4%, as investors collectively whispered “finally!” while clutching their takeout menus.
Now, let’s dive deeper into what Netflix reported for the rollercoaster of fiscal fun that ended on September 30:
- Earnings per share: $5.40 vs. $5.12 expected. So close, yet so far—like reaching for the last slice of pizza but your friend beats you to it.
- Revenue: $9.83 billion vs. $9.77 billion expected. Cue the confetti—Netflix found an extra $60 million hiding under the couch cushions!
- Paid memberships: A blockbuster 282.7 million vs. 282.15 million expected. That’s a lot more folks looking for something to binge during a midlife crisis!
Net income jumped to $2.36 billion, up from the previous year’s $1.68 billion. It seems Netflix is proving that while the rest of the world is juggling worries about the economy, they’ve found the secret stash of cash in the front room couch.
Speaking of which, Netflix anticipates fourth-quarter revenue to party hard at $10.13 billion and expects earnings per share to deflate slightly to $4.23—think of it as popping a balloon at a child’s birthday party. Everyone’s still having fun, but you feel that painful pinch.
Fast forward to 2025, when they predict revenue will hit between $43 billion and $44 billion. Apparently, Netflix is betting that viewers are gonna want more of that tantalizing binge-worthy content they can’t resist, alongside new shiny things like ads and gaming—because why not throw in a virtual piñata or two?
During the latest quarter, Netflix added a whopping 5.1 million subscribers, beating Wall Street’s rather timid expectation of 4.5 million. The streaming service now celebrates an audience larger than many countries (282.7 million memberships, just for your info). It’s like hosting an all-you-can-eat buffet, and everyone’s decided to RSVP.
Important newsflash: Starting in 2025, Netflix will no longer provide updates on subscriber numbers and will switch to hyping revenue and other financial metrics—because lines on charts are way more fun than counting your pals.
And to keep the content flowing, Netflix is pushing the envelope with new and returning shows like “The Perfect Couple,” “Nobody Wants This” and “Tokyo Swindlers.” Meanwhile, “Squid Game” is poised for a second season—nothing says holiday cheer like watching poorly executed games with life-altering consequences.
But wait, there’s more! Netflix has live sports events lined up too, because what’s a good Christmas without boxing matches between internet celebrities and the NFL’s signature chaos?
Correction: This story has been updated to clarify Netflix’s third-quarter revenue predictions—after all, accuracy is the new black in business!
This is a breaking news story, folks—stay tuned for the latest updates that might be weirder than reality TV!
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