During the same period past year, the company earned $0.29 earnings per share. The business had revenue of $3.91 billion during the quarter, compared to analyst estimates of $3.94 billion.
"After handily blowing away Street expectations on subs in the last few years, this is a clear speed bump for Netflix as the worldwide miss was most concerning, given this is the linchpin to the core growth thesis for the coming years", GBH Insights technology analyst Daniel Ives said at the time, suggesting a "speed bump" rather than the start of a negative trend. "The latter has not developed at a pace that exceeds our expectations, which suggests upside is more limited".
Netflix has spent almost $7 billion on programming through the first nine months of the year, and plans to boost its investment in the years to come. Even before the surge that started with Tuesday's after-hours trading, the shares were up 80 percent this year.
Shares of Netflix Inc soared 11 percent before the bell on Wednesday, after the company put fears of a slowdown in growth to bed by racking up seven million new subscribers between July and September. Wall Street analysts had expected Netflix to add about 5.2 million streaming customers in the quarter.
Looking ahead to the fourth quarter, Netflix expects its operating margin will come in a 5%, down from 7.5% during the fourth quarter of 2017. If investors expect it to make $10 per share (its net income divided by the number of shares it has issued), it would have a price-earnings ratio of 10.
"Given the decreasing efficiency of content and marketing spending, we are decreasing our global contribution profit estimates", he wrote.
For the quarter, Netflix reported revenue of $4 billion and earnings of 89 cents per share. Original programming, said Netflix CCO Ted Sarandos in a video interview posted alongside the letter, has proven a better investment in terms of viewing per dollar spent, than licensed movies and series, as well as reducing negotiations with rights holders from outside studios.
Netflix plans to spend about US$8 billion on programming this year.
Netflix never identifies which shows are most successful.
Subscriber additions: 7 million total.
Netflix revenue soared 34% year-on-year in the quarter to nearly $4 billion, while profits grow in three folds to $403 million. For the record Netflix produced shows had over 112 Emmy nominations, and 23 wins (a tie with HBO for the most). Next year, Disney, which bought the film and TV assets of Twenty-First Century Fox, is set to launch its streaming service, as is WarnerMedia, the amalgam of AT&T and Time Warner. If the stock keeps rising over the coming weeks, it would underscore that investors still have a strong appetite for riskier companies, an attitude that might spill over into other technology firms.