Netflix saw its stock value climb by 14% after the company beat analysts’ expectations, adding 2.41 million net subscribers across the globe — more than double the numbers the company had projected last quarter.
The company expects its revenue to reach $7.8 billion with the addition of 4.5 million subscribers during its first fiscal quarter. It also noted that it is very optimistic about its advertising business and seeing growth in demand for its low-cost, ad-supported subscription plan.
“After a challenging first half, we believe we’re on a path to reaccelerate growth,” the company said in a statement on Tuesday. “The key is pleasing members. It’s why we’ve always focused on winning the competition for viewing every day. When our series and movies excite our members, they tell their friends, and then more people watch, join and stay with us.”
Looking ahead, the company no longer plans to offer guidance on its paid membership. However, it will continue to report the numbers in its quarterly earnings reports, CNBC reported.
The latest earnings report is a welcome relief for Netflix as the company saw its market cap shrink by $54 billion after it fell short of meeting its goal of adding 2.5 million subscribers nearly six months ago.