Netflix shares closed up 11% on Friday after the media streaming large reported third-quarter earnings and income that beat expectations.

The corporate on Thursday reported earnings per share of $5.40 for the three-month interval ended Sept. 30, surpassing the $5.12 LSEG consensus estimate. Income additionally beat expectations, coming in at $9.83 billion, above the $9.77 billion anticipated by analysts.

Crucially, Netflix noticed momentum in its ad-supported membership tier, which jumped 35% quarter over quarter. Whereas Netflix does not count on advertisements to turn out to be its main development drive till 2026, it stated the ad-tier accounted for over 50% of sign-ups within the third-quarter in international locations the place it is out there.

Netflix additionally gave an upbeat outlook for the December quarter, saying it expects fourth-quarter income to rise 14.7% to $10.13 billion. It is forecasting income of $43 billion to $44 billion for 2025, which might imply development of 11% to 13% from its anticipated 2024 income of $38.9 billion.

Analysts at Citi stated in a observe following Netflix’s earnings report that the agency’s fourth-quarter outlook “exceeded the Avenue” whereas its 2025 forecast “was comparatively in step with consensus estimates.”

Richard Broughton, govt director of Ampere Evaluation, advised CNBC’s “Squawk Field Europe” on Friday that Netflix has benefited from continued investments in content material, regardless of a grim surroundings for the broader media panorama.

“It is a good indicator that a number of the development that dropped out of the market in 2022 is returning. If you consider the final 24 months, we have had cutbacks in content material expenditure, hiring freezes, redundancies in a number of the main studios and streamers. And all by means of this, Netflix has tried to maintain investing in content material. That units it up extraordinarily effectively over the subsequent couple of years,” Broughton stated.

“If we take into consideration scripted TV, dramas, romance and science fiction, Netflix goes to be answerable for not far off 1 in 10 international sequence subsequent yr. It is in a really, very completely different place in comparison with a few of its opponents simply when it comes to scale,” he added.

Correction: Netflix expects fourth-quarter income to rise 14.7% to $10.13 billion. An earlier model misstated a determine.