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18 Julio 2017, 03:05 | Fidele Alvizo
13 Reasons Why cited by Netflix chief Reed Hastings as a risk that all paid off. Netflix
Netflix shares surged on Monday, July 17 after the firm said it now had about 104 million subscribers, a larger-than-expected number that boosted revenues, BBC News reports.
For the third quarter of fiscal 2017, Netflix expects to post adjusted earnings of 32 cents per share and roughly $3 billion in revenue.
Netflix brought in more subscribers than expected for the second quarter, signaling robust customer growth for the period that has traditionally been slow for the digital streaming giant. Netflix said it added a record 5.2 million new members during the quarter that ended in June.
The U.S. segment had a total of 1.07 million net additions for the quarter, while the global segment pulled in 4.14 million net adds. If you are accessing this story on another publication, it was illegally stolen and reposted in violation of United States & worldwide trademark & copyright laws. For Q3, analyst projections had ranged from 630,000 to 750,000 in the US and from 2.85 million to 3.5 million internationally.
Netflix was able to crush Wall Street's estimates, and its own, with the help of new seasons of some of its most popular shows such as "Orange is the New Black" and "House of Cards".
The company has been investing as many as $6 Billion every year to produce content. That's in addition to 13 original comedy specials, six documentaries, two documentary series, nine feature films and seven original kids shows. The company had revenue of $2.79 billion during the quarter, compared to analysts' expectations of $2.76 billion. While that would likely be driven by the timing of content releases, it would still be significant as Netflix's growth in the US has slowed.
Netflix rocketed up 10% in after hours trading on the news of better-than-expected subscriber gains. Q3 will also have a favorable comparison to past year for Netflix, when Q3 saw Netflix's price increase - dubbed "un-grandfathering" - hurt its subscriber growth.
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