Netflix kicked off earnings season Thursday, reporting quarterly revenue growth alongside global paid net subscriber additions of 5.07 million.
Netflix revenue reached $9.8 billion in for the three-month period ending September 30, up 15% year over year. Its Q3 operating margin of about 30% improved versus 22% in the same period last year.
Netflix’s global paid subscriber base now stands at 282.7 million, up 14% year over year. While the growth rate improved year over year, the number of net subscribers it added in the period – 5.07 million – was fewer than the 8.05 million added in Q2 and the 8.76 million added in Q3 2023.
The SVOD giant saw the largest subscriber gains in the APAC region, where it added 2.28 million in the period. And APAC also had the highest revenue growth rate among all Netflix regions, growing 19% yoy to reach $1.1 billion in the quarter In a letter to shareholders, Netflix attributed the region’s leading revenue growth rate to improvements to its product and market fit in the region, as well as a strong local content slate in Japan, Korea, Thailand and India in Q3.
Its home market of the U.S. and Canada is the most saturated and subscriber gains in the region weren’t as strong, but still added 694,000 in Q3, up 10% yoy, for a domestic base of about 84.8 million. And it’s still the largest revenue driver, with the domestic market generating $4.3 billion in Q3, up 16% year over year on the back of subscriber additions and a 5% yoy bump in average revenue per member to $17.06.
Netflix also reported strong subscriber gains in EMEA, adding 2.2 million in the period, with revenue of $3.1 billion, up 16% yoy, driven by subscriber growth. The only region that saw subscriber losses was Latin America, which declined by 68,000 net customers. Netflix attributed declines to recent price changes and a softer content slate. The letter to shareholders said membership growth in the region “has rebounded nicely in early Q4’24.” Despite subscriber losses, revenues in LATAM still rose 9% yoy to $1.24 billion.
According to the shareholder letter, Netflix is seeing healthy engagement on its platform, averaging around two hours a day per paid subscriber on average, despite impacts from paid sharing.
Netflix hosts its Q3 earnings interview later today.