Netflix Shares rose 11% on Friday morning after the media streaming giant reported third-quarter earnings and revenue that beat expectations.

Netflix reported earnings per share of $5.40 for the three-month period ended September 30, beating the LSEG consensus estimate of $5.12. Revenue also beat expectations, coming in at $9.83 billion, ahead of analysts’ expectations of $9.77 billion.

Crucially, Netflix saw momentum in its ad-supported membership tier, increasing 35% quarter-over-quarter. While Netflix doesn’t expect advertising to become its primary growth driver until 2026, the company said the ad tier accounted for over 50% of sign-ups in the third quarter in the countries where it is available.

Netflix also gave an upbeat outlook for the December quarter, saying it expects fourth-quarter revenue to rise 14.7% to $10.13 billion. Revenue is forecast to be $43 billion to $44 billion in 2025, which would represent growth of 11% to 13% over expected 2024 revenue of $38.9 billion.

Analysts at Citi said in a note following Netflix’s earnings report that the company’s fourth-quarter outlook was “above the Street,” while its 2025 forecast was “relatively in line with consensus estimates.”

“All in all, we expect shares to trade higher,” analysts at Citi stressed on Friday on the back of the earnings.

Richard Broughton, chief executive of Ampere Analysis, told CNBC’s “Squawk Box Europe” on Friday that Netflix has benefited from continued investment in content despite a bleak environment for the broader media landscape.

“It is a good indicator that some of the growth that disappeared from the market in 2022 is returning. If you think about the last 24 months, we’ve had content spending cuts, hiring freezes, layoffs at some of the major studios, etc. “And through that, Netflix has looked to continue to invest in content over the next few years,” Broughton said.

“If we think about scripted television, dramas, romance and science fiction, Netflix will be responsible for almost one in ten global series next year. “The company is in a very, very different position compared to some of its competitors alone.”

Correction: Netflix expects fourth-quarter revenue to rise 14.7% to $10.13 billion. A previous version misstated a number.