Netflix recovered in Q3 after experiencing subscriber declines for two consecutive quarters, which reduced its market cap by billions of dollars.
The huge streaming company announced 2.4 million additional paying members between June and September, which sent its stock soaring by more than 18%.
Data indicates that following the most recent earnings announcement, Netflix’s market cap increased by more than $30 billion.
Netflix’s stock price has decreased by 60% during the past year.
Due to its steadily expanding member base, Netflix has generated more than $143 billion in revenue over the years. However, the streaming giant lost 1.2 million customers in the first half of 2022 as a result of escalating costs, which gave rivals an advantage.
In December of the previous year, Netflix had 221.8 million paid customers.
Its market cap was around $260 billion at the time. The market valuation of the streaming juggernaut was reduced by more than $50 billion when the company revealed its first startling subscriber drop in April.
The number of Netflix subscribers fell to 220.6 million by the middle of 2022, while the total market value of the company’s shares fell to $77.9 billion, a 70% decrease in just eight months.
Nine-Month Sales Increase by 9%
Netflix might be back on a path to reaccelerate growth after a difficult first half of the year. In addition to adding new customers, the streaming juggernaut revealed better-than-anticipated income in Q3. Netflix’s revenue between June and September was $7.93 billion, undershooting experts’ predictions of $7.83 billion, according to the company’s quarterly report.
In terms of earnings, this was the business’s second-highest performing quarter, trailing only the $7.97 billion reported in Q2 2022. According to statistics, Netflix made $23.75 billion during the first nine months of 2022, which is 9% more than during the same time last year.
There is a likelihood that Netflix will soon introduce a no-cost, ad-supported option. Kenya is one of the few nations having limited Netflix content that is accessible for free on mobile devices.