Netflix is still on its rounded-up-to-pretty-great run as it continues to add more and more subscribers, and once again is outstripping its own estimates for growth.
Today the company said it added 5.3 million new total subscribers, with 850,000 coming in the U.S. and 4.45 million coming from international markets. Netflix is spending very aggressively on original content, and so far it looks to be paying off in terms of net subscriber growth as it looks to turn Emmy awards into contributions for its bottom line. Here’s the sum chart of the past couple of quarters:
Financially, Netflix turned in a quarter that was slightly above Wall Street’s expectations. We’ll get to the core numbers in a second since we won’t get super bogged down here, but in the end, the company appears to be delivering on its strategy. The big question mark is if it can sustain this momentum and keep those Metacritic scores up with its content spending, which will help it attract new users both in the U.S. and abroad.
While Netflix was able to beat those fiscal numbers, at the end of the day it’s those subscriber numbers which are the ones that really count. Each new addition is another chance to generate a subscription fee every month, and Netflix also looked to increase the prices of its subscriptions as it figures out exactly what people are willing to spend. Shares of Netflix were up slightly in extended trading. This year, the company’s stock has been on a pretty exceptional run:
Here’s the full slash line for the company’s earnings report:
- Revenue: $2.98 billion, compared to $2.97 billion estimated by Wall Streed
- Earnings (adjusted): 37 cents per share, compared to 32 cents per share estimated by Wall Street
- Net subscription adds: 5.3 million (850,000 million in the U.S. and 4.45 million abroad), compared to previous estimates of 4.4 million net additions (750,000 in the U.S. and 3.65 million abroad)
- Q4 forecast subscription adds: 6.3 million (1.25 million in the U.S. and 5.05 million abroad)
- Q4 Revenue forecast: $3.3 billion