Netflix Beats Q3 Estimates with Surging Subscriber Growth Despite Price Hikes

Netflix reported strong Q3 results with revenue beating expectations and subscriber growth surging to 8.8 million net additions.

The company announced price hikes in the US, UK, and France. Basic and Premium plans in the US will now cost $11.99 and $22.99.

Despite adding subscribers, average revenue per membership decreased 1% year-over-year.

Profitability metrics like operating margin and free cash flow exceeded expectations.

Adoption of Netflix's new ad-supported plan continues to grow, up almost 70% from last quarter.