Netflix announced better-than-expected third-quarter results in terms of revenue and profits.
According to Arabiya Net, the company's shares rose by more than 14% after closing on Tuesday, following the announcement of the results.
The company also reported adding 2.41 million global subscribers, more than double the additions the company had expected a quarter of a year ago.
In addition, Netflix will start cracking down on password sharing next year, choosing to allow people who borrow accounts to create their own.
The company will also allow people who share their accounts to create sub-accounts to pay friends or family to use their accounts.
The company's results were as follows:
Earnings per share were $3.10 versus $2.13 per share, according to Refinitiv forecasts.
The company generated revenue of $7.93 billion, versus expectations of $7.837 billion.
The net global subscriber base grew by 2.41 million against expectations of adding 1.09 million, according to StreetAccount estimates.
Most of Netflix's net subscriber growth during the third quarter came from the Asia Pacific region, which acquired 1.43 million subscribers.
The US and Canada regions recorded the lowest growth in the Netflix regions, contributing only 100,000 net subscribers.
“We are still not growing as fast as we would like,” Netflix chief financial officer Spencer Newman said during the company's earnings call.
Starting the following quarter, Netflix will not provide guidance on its paid subscriptions, but it will continue to report these numbers during its quarterly earnings release.
Netflix expects to add 4.5 million subscribers during the first quarter of the next fiscal year.
It said it expected revenue of $7.8 billion, due in large part to currency pressures abroad.
The company touted shows and movies like Stranger Things Season 4, The Gray Man and Purple Hearts as successes that helped move the needle through the third quarter.
It also influenced the addition of its new, lower-priced, ad-supported plan, which will be launched in 12 countries in November.
After a difficult first half, we believe we are on the path to accelerating growth, the company said in a statement on Tuesday, adding: The key is customer satisfaction.. That's why we've always focused on winning the competition to watch every day.
She continued, When our members love our series and movies, they tell their friends, then more people watch with us, join us and stay with us.