Netflix (NFLX, Financial) revealed that the streamer witnessed a decline in net subscriptions during the summer. This follows last year's steep increases due to the measures taken against account sharing. Netflix gained 5.1 million subscribers in the July-September quarter, down 42% from a year ago.

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At the same time, though the company is not gaining as many new subscribers monthly, its financial prospects are healthier. The company, located in Los Gatos, California, posted revenue of $2.36 billion, or $5.40 per share, which was 41% higher than last year. Global revenue also increased by 15% to $9.82 billion, driven by organic growth that was higher than the rate expected by analysts using data from FactSet Research.

Netflix has an audience of 282.7 million subscribers worldwide as of September, staying a leader among the streaming services. The company's management expects the October-December quarter revenues to be up 15% YoY, a touch above the consensus estimate.

This has, in turn, assisted in reducing investors' fear of the slow rate of increase in subscribers. After the announcement, Netflix shares were up 3.8% in after-hours trading and are up over 40% for the year so far.

Netflix's co-CEO Ted Sarandos discussed the company's measures to ramp up growth after pointing to the effect of their policy of restricting account sharing. This was done when the subscriber base was almost declining in 2022 and has since helped to cause a drastic improvement in the subscriber base, contrary to the fate of many competitors due to squeezed customer budgets.

This article first appeared on GuruFocus.