Netflix added nearly 7 million users in the three months through September, an increase that exceeded company estimates and helped contribute to soaring profits at the video-streaming platform despite increasing competition from Amazon, Hulu, and others.
Revenue grew 36 percent to $4 billion, in line with Wall Street expectations. Profits increased to $403 million or 89 cents per share, higher than the 68 cents that analysts surveyed by FactSet predicted.
Netflix expects revenue to grow 5 percent in the final months of 2018 to $4.2 billion and subscribers to increase by 9 million users.
One potential area of growth for the company is a bundled service where the Netflix app is joined with a paid TV offering, Chief Product Officer Greg Peters told investors.
"There's still pockets of consumers who it's harder for them to get the...energy to go directly to the website and sign-up," he said on the company's earnings interview. "We make it easier, more effective for folks to sign up, we see acceleration of adds there."
Netflix's growth comes as companies such as Apple and Amazon invest heavily in original content for their own video-on-demand services. Walmart this week announced a partnership with Metro-Goldwyn-Mayer Inc. to create programming for the studio's online platform.
The Department of Justice is in the midst of appealing a decision from a federal judge to allow the AT&T-Time Warner merger, a transaction aimed at honing the telecommunications giant's edge in the content industry.
Walt Disney Co., meanwhile, purchased key 21st Century Fox assets, including its stake in Hulu, to help the media conglomerate launch its own streaming site.
Addressing the increasingly competitive environment, Netflix's top executive told investors "no one company affects us that much," but warned the companies will eventually need to battle for the same consumer dollars.
"Someday there will have to be competition for wallet share, we're not naive about that. But it seems very far off from everything we've seen," Reed Hastings said on the earnings interview.
Netflix rose 13 percent to $391.01 in after-hours trading in New York.