Netflix reversed customer losses that had hammered its stock this year as the streaming giant is projecting more growth ahead.
The California based company reported Tuesday that it picked up 2.4 million subscribers during the July-September period, more than double what Wall Street expected.
Results represent a major comeback from a loss of 970,000 subscribers during the second quarter and 200,000 subscribers during the first quarter.
“Thank god we’re done with shrinking quarters,” Netflix co-CEO Reed Hastings said during the company’s earnings interview. “We’re back to the positivity. Obviously, this quarter and the guidance for Q4 are reasonable — not fantastic, but reasonable. We’ve got to pick up the momentum.”
Shares of Netflix jumped 14% in after-hours trading on Tuesday, after the company’s forecast that it would pick up 4.5 million customers in the fourth quarter.
Earlier this year Netflix started assessing options, like preventing password sharing to boost new subscribers.
The upcoming launch of a cheaper version of the video streaming service is expected to drive the company’s results.
Netflix said it would debut its ad tier in early 2023, however the streamer is set to launch an ad-supported subscription Nov. 3 for $6.99 a month, about a month before Disney+ will launch its ad-supported tier for $7.99 a month
Netflix has over 223 million subscribers and is still the largest video streaming service. Walt Disney in August reported its service had 221 million subscribers and is expected to update results on Nov. 8.