Netflix Inc. reported a larger-than-expected increase in new additions as the streaming video service's recent expansion helped to offset increased competition and price increases.
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Monday's disclosure that it had added 3.57 million streaming subscribers in the most recent period comes a quarter after it reported the weakest subscriber expansion in two years. In July, Netflix had projected 2.3 million in additional subscribers for the September quarter.
Shares surged 19% to $119 in after-hours trading. Before that, the stock had fallen 13% this year as the streaming video giant has struggled to keep up the pace of subscriber growth, despite an ambitious expansion abroad.
In the U.S., Netflix added 370,000 subscribers, ahead of its forecast of 300,000, though it still slowed sharply from the year-ago quarter when it added 880,000 domestic subscribers.
Internationally, Netflix added 3.2 million subscribers, compared with its guidance of 2 million. While that is a boost from the year-ago quarter's 2.74 million subscribers, it is a relatively small gain considering that it launched in more than 130 countries in between.
The company said it ended the quarter with about 83.3 million paid memberships.
Over all, Netflix reported third-quarter profit of $51.5 million, or 12 cents a share, up from $40.76 million, or 9 cents a share.
Revenue rose to $2.29 billion from $2.1 billion.
Analysts surveyed by Thomson Reuters had projected earnings of 6 cents a share on $2.28 billion in revenue.