Favorable earnings and subscription numbers report boosts Netflix's growth

After Netflix released its third-quarter earnings report, which beat earnings and revenue forecasts, while the number of subscribers also beat expectations, Netflix's stock price rose in after-hours trading.

Earnings per share were $3.10, $0.92 above analysts' forecast of $2.18, while revenue for the quarter was $7.93 billion, compared with a forecast of $7.85 billion, up 6% from last year. 

Netflix said that while they are optimistic about their new advertising business, they still don't expect to see significant revenue growth in 4Q22, as they plan to launch the Basic with Ads package during the quarter and expect to see a gradual increase in subscribers to this plan in the future.

According to the corporation, they believe they can adjust their pricing and cost structure over the medium term in the face of a stronger U.S. dollar. Their long-term goals remain unchanged - ensuring double-digit revenue growth, even more rapid growth in operating profit (as margins increase) and growing positive free cash flow.