04:49 PM EDT, 10/17/2024 (MT Newswires) -- Netflix ( NFLX ) late Thursday reported higher-than-expected third-quarter results as the streaming giant's new subscriber count surpassed Wall Street's estimates.

Revenue increased 15% year-over-year to $9.83 billion, topping the consensus on Capital IQ for $9.77 billion. Per-share earnings rose to $5.40 from $3.73 a year earlier, higher than the Street's $5.12 GAAP view.

Netflix's ( NFLX ) global paid net additions declined to 5.07 million in the third quarter from 8.76 million a year earlier, but exceeded the consensus on Visible Alpha for a 4.6 million increase.

Netflix's ( NFLX ) shares were up 3.9% in after-hours trade.

"Ads membership was up 35% quarter on quarter, and our ad tech platform is on track to launch in Canada in (the fourth quarter) and more broadly in 2025," the streaming service said in a letter to shareholders.

Netflix ( NFLX ) said it increased prices "in a few countries" in the region that covers Europe, the Middle East, and Africa, as well as Japan earlier this month. Prices will rise in Spain and Italy starting Friday. "We phased out the basic plan in the US and France this past quarter and we'll do the same in Brazil later in (the fourth quarter)," Netflix ( NFLX ) said.

The company projects fourth-quarter revenue rising 15% year-over-year to $10.13 billion, topping analysts' $10.02 billion estimate on Capital IQ. Netflix ( NFLX ) projects net subscriber additions to be higher sequentially due to seasonality and a strong content slate.

Revenue growth this year is now pegged at 15% to $38.9 billion, compared with a 14% to 15% increase previously projected. The streamer raised its 2024 operating margin outlook to 27% from 26%.

For 2025, the company forecast revenue of $43 billion to $44 billion, which would represent growth of 11% to 13% off of its 2024 guidance.

"As we head into 2025, we expect to deliver solid revenue and profit growth by both improving our core series and film offering while investing in new growth initiatives like ads and gaming," Netflix ( NFLX ) said. "We have much more work to do improving our offering for advertisers, which will be a priority over the next few years."

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