Netflix reported strong third-quarter earnings on October 18, 2023, driven by growth in its subscriber base.

Total revenue for the quarter was $8.54 billion, up 7.8% from the same period last year. Net income was $1.67 billion, or $3.73 per share, up 4.9% from the same period last year.

Netflix added 8.76 million paid subscribers in the third quarter, bringing its total subscriber base to 238 million. This was higher than Netflix’s guidance of 8.5 million new subscribers.

Netflix’s subscriber growth was driven by strong demand for its original content, such as “Stranger Things,” “Squid Game,” and “The Crown.” The company also benefited from a weaker US dollar, which boosted its revenue from international subscribers.

What do Netflix’s earnings results mean for investors?

Netflix’s earnings results are good news for investors. The company’s subscriber growth is accelerating, and its financial performance is improving.

Netflix’s stock price has fallen by about 60% year-to-date, but the company’s earnings results suggest that the stock is undervalued. Investors who believe in Netflix’s long-term growth prospects may want to consider buying shares of the stock.

Here are some additional thoughts on Netflix’s earnings results:

Netflix’s subscriber growth was driven by both new and returning subscribers. This suggests that Netflix is still able to attract new customers and retain existing customers.
Netflix’s revenue growth was driven by both subscriber growth and higher average revenue per user (ARPU). This suggests that Netflix is able to monetize its subscriber base more effectively.
Netflix’s net income growth was driven by higher revenue and lower costs. The company’s content costs were down slightly, and its operating expenses were down slightly. This suggests that Netflix is managing its costs effectively.
Overall, Netflix’s earnings results are positive for investors. The company’s subscriber growth is accelerating, its financial performance is improving, and its stock price is undervalued. Investors who believe in Netflix’s long-term growth prospects may want to consider buying shares of the stock.

Netflix’s strong earnings results also have implications for the broader streaming industry. Netflix is the dominant player in the streaming industry, and its success suggests that the industry is still growing.

Netflix’s earnings results are also good news for consumers. The company’s strong performance suggests that consumers are still willing to spend money on streaming entertainment.