After a stumble with its previous results, the world's largest paid online TV network added far more subscribers than analysts expected in the third quarter. Said eMarketer media analyst Paul Verna.
Those stellar numbers sent shares of Netflix up more than 11 percent in after-market trading, to $386.11.
Netflix shares soared after smashing growth and revenue targets, despite the company nearly doubling its debt in order to invest in original series. It now has 137m subscribers overall, 135m of whom pay monthly fees.
Analysts keep setting the ceiling and Netflix keeps crashing through it.
"There's also very upbeat guidance around customer additions in the final quarter of the year, with the group's forecast of 9.4 million well above prior expectations". While most of that still funds shows licensed from other companies, original programs account for a growing share.
The company added 7 million subscribers in the September, exceeding its conservative forecast for 5 million net additions to the service in the third quarter.
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Worldwide territories account for most of that growth and remain the key to the company's future.
"We feel like we have a long, long runway ahead of us in India", Greg Peters, chief product officer, said in a post-earnings video interview.
Last year, it generated $8 billion in global revenues.
"Rising interest rates could make Netflix increasingly vulnerable to higher cost of capital", CFRA research analyst Tuna Amobi said. It expects too spend $8bn on content this year, far more than rivals Amazon and HBO as the tech giants battle it out with traditional media companies. By the end of the year, Netflix expects to expand that base to 146.5 million. It cut its projection of negative cash flow to closer to $3 billion.
Netflix is the first of the so-called Faang companies (Facebook, Apple, Amazon, Netflix and Google) to report this quarter.
"It'll probably still be the case that they're going to stick to raising debt twice a year", he said. Netflix added almost 7 million subscribers in the quarter, easily beating its estimates - and Wall Street expectations - of 5 million. That beat analysts' average estimate of 68 cents, according to Refinitiv.
Netflix has spent almost $7 billion on programming through the first nine months of the year, and plans to boost its investment in the years to come.