Netflix's earnings per share (EPS) stood at $3.73, surpassing the expected $3.49 per share. The company's revenue for the quarter amounted to $8.54 billion, aligning with the projected figure. Netflix's total membership count reached 247.15 million, exceeding the estimated 243.88 million.
The ad-supported subscription plan witnessed a nearly 70% increase in subscribers during the quarter. However, the specific percentage of subscribers in this plan was not disclosed. Disclosed pricing:
- Netflix's ad-supported tier will remain at $6.99 per month in the United States.
- Basic plan's monthly fee increased to $11.99 (from $9.99)
- Premium plan's monthly fee increased $22.99 (from $19.99)
- Standard plan's rate remained unchanged at $15.49 per month.
Netflix faces higher production costs as part of its recent agreement with the Alliance of Motion Picture and Television Producers (AMPTP), which entailed increased wages and monetary benefits linked to streaming popularity. The company's executives remain dedicated to reaching an agreement with striking actors, despite recent setbacks in negotiations.
The company anticipates an 11% revenue increase in the fourth quarter, reaching $8.69 billion, slightly below the Wall Street's projected figure of $8.77 billion. The company expects that net subscriber additions will be in line with the third quarter.
Netflix acknowledged the impact of the strong U.S. dollar in recent months, which is anticipated to result in an approximately $200 million decline in fourth-quarter revenue. The company raised its full-year 2023 operating margin projection at 20%, Forecasted operating margins for 2024 were 22% to 23%.
Netflix also expressed its intent to make significant changes in its compensation model in 2024, transitioning to a more conventional framework based on performance.