Summary:

Netflix (NSDQ: NFLX) Q3 revenues came in at $341 million, up 16 percent year-over-year from Q307’s $294 million. Meanwhile, GAAP net income…

imageNetflix (NSDQ: NFLX) Q3 revenues came in at $341 million, up 16 percent year-over-year from Q307’s $294 million. Meanwhile, GAAP net income for the same period was $20.4 million ($0.33 per diluted share), compared to $15.6 million ($0.23 per diluted share) the year before — a 30 percent gain. Gross profit also grew, rising 8.4 percent to $116 million from Q307’s $107 million. The movie rental company also beat analysts’ estimates, Reuters reported. As a result, Netflix shares gained roughly 3 percent to end $24.53 a share in after-hours trading on Monday after closing at $23.80 a share. Other highlights from Netflix’s Q3 included:

– Subscriber acquisition cost was $32.21 per gross subscriber addition, compared to $37.89 for the same period of 2007 and $28.89 for the second quarter of 2008.

– Churn was 4.2 percent, the same as it was last year and Q208.

– Free cash flow was $26.2 million, compared to $36.2 million the previous year.

Outlook: Netflix expects to end Q4 with 8.85 million to 9.15 million subs, down from the previously anticipated 8.95 million to 9.25 million. Next quarter’s revenue is expected to range from $351 million to $357 million, down slightly from $353 million to $359 million, with GAAP net income between $18 million to $23 million, unchanged from prior guidance.

Release (PDF) | Webcast (5:00 pm EDT) | Transcript (via Seeking Alpha)

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