Netflix Gains 5.3 Million Subscribers in Q3

Netflix isn’t showing any signs of slowing down. The streaming service giant reported a 49% year-over-year increase in global subscribers in the third quarter with almost 5.3 million new customers.

The news, which was revealed at the close of trading on Monday, set Netflix stock skyrocketing once again. Throughout the regular trading day, the stock hit a record high rising $3.19 to reach $202.59.

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The end of the third quarter came on September 30 with total revenue gaining 30.3%, which was the smallest increase for several quarters. However, Netflix still brought in just under $3 billion.

In a letter to the shareholders, Netflix didn’t seem worried about the smaller percentage of sales.

“We are growing nicely across the world and are on track to exceed $11 billion in revenue in 2017,” the letter said, according to Deadline. “Internet entertainment is delighting consumers, and we are staying at the forefront of this once-in-a-generation opportunity.”

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While Netflix’s sales didn’t see a huge jump, the company’s net income rose sharply since Q3 of last year. The streaming service reported $130 million in net income compared to $52 million in last year.

One change to the company’s operations was the recent price hikes. In the letter, Netflix said the increase in prices “over time will help us grow our content offering and continue our global operating margin growth.”

Because of the price hike, Netflix predicts that the subscription levels won’t match the record levels set in the fourth quarter of 2016 which saw 7 million-plus new subscribers.

Netflix also addressed the plans to spend heavily on marketing its original content in the US.

“We spend disproportionately in the U.S. to generate media and influencer awareness for our programming which we believe, in turn, is an effective way to facilitate word of mouth globally,” the letter said.