Netflix Inc reversed customer losses that have hit its stock this year and expects more growth, reassuring Wall Street as it prepares to offer new streaming options through advertising.

Netflix shares rose 14% in after-hours trading because the streaming giant expects to attract 4.5 million customers in the fourth quarter. The company’s stock, which has become an investor favourite amid its years of rapid growth, is down nearly 60% this year ahead of the earnings report.

From July to September, Netflix attracted 2.4 million new subscribers globally, more than double Wall Street expectations.

The streaming giant is struggling to kickstart membership growth after a sudden decline in the first half of the year. Its user base shrank by 1.2 million amid global economic turmoil and growing competition for online video viewers. Netflix now has 223.1 million subscribers worldwide.

Most mature services have stopped growing in the US, where the market has matured. New entrants such as Paramount Global’s Paramont+ are grabbing market share thanks to living sports programming.

Netflix estimates that competitors will have combined operating losses of “more than $10 billion” by the end of 2022, compared with Netflix’s annual operating profit of $5 billion to $6 billion.

Competitors such as The Walt Disney Company operate multiple businesses, including TV networks and theme parks, that make up for streaming losses. In the third quarter, Netflix beat analysts’ estimates with $7.9 billion in revenue, up 6% year over year. Earnings per share were $3.10.

The company expects to pick up 4.5 million customers by the end of the year, slightly above the average Wall Street estimate of 4.2 million. Netflix expects fourth-quarter revenue of $7.8 billion, with the quarter-over-quarter decline blamed on a stronger dollar. In early November, Netflix launched a $ 7-per-month streaming plan with ads to attract cost-conscious customers. Disney, Warner Bros, Discovery, and others also offer or plan to offer ad-supported options.

While Netflix is making various changes to drive growth, the company remains committed to producing original shows and releasing all episodes immediately for binge-watching. Netflix said it would no longer provide quarterly guidance for new customers. The company will continue to issue forecasts for categories such as revenue, operating income, and more.