Netflix now said it has 125 million subscribers around the world, up from 117.6 million a year ago, with 56.7 million in the USA where a stronger than expected 2 million or so were added in the quarter.
The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017.
WallStreet anticipated Netflix to add 6.5 million new subscribers, according to FactSet info. There are consensus estimates calling for $0.64 in EPS on $3.69 billion in revenue. Insiders have sold 323,643 shares of company stock worth $43,782,818 over the last three months.
Looking ahead, Netflix expects to add 6.2 million subscribers in the upcoming quarter - up from 5.2 million in the year-earlier quarter, and higher than Wall Street expectations of 5.24 million. In the financial report, Netflix says they will have expenses of $7.5 billion to $8 billion for content expenses in 2018 across formats. As it has expanded to some 190 countries, investors accepted negative free cash flow in exchange for the potential of outsized growth in future years.
The decline primarily stemmed from discounts that Spotify gave for its family packages and students, helping to increase its paid subscribers from 28 million in 2015 to 71 million at the end of a year ago - almost twice as many as Apple Music, its biggest rival.
Twenty years after it launched, people are still signing up for Netflix in droves.
"Subscribers are accelerating even at higher pricing", BTIG analyst Richard Greenfield said.
The slate included Altered Carbon & ldquo; science comic series & rdquo; and Marvel activity play & ldquo;Jessica Jones. Despite increasing spend on original content, that subscriber number is still mostly where it gets its market value because it's a forward predictor of its revenue. Netflix also adds that the Spanish-language thriller Money Hesist "became the most watched non-English series on Netflix ever". The company's shares are up around 6% in extended trading, sending its market cap up north of $140 billion.
However, it faces rivalry as tech companies like Apple and Amazon pour funds to streaming global rivals jump and customers that are digital are pursued by media organizations.
Walt Disney Co will stop supplying new movies to Netflix starting next year and will start its own streaming service for families.
Netflix added more than 7 million subscribers in the first quarter, even as the company's average US subscription price rose 12 percent in the past year. It appears mostly bullish, as TipRanks analytics demonstrate NFLX as a Buy.
"The growth in new subscribers and a 14% rise in the average cost of a Netflix membership, also led to a 40% year-on-year increase in revenue to $3.7 billion, the fastest pace in the company's history".
"You have to earn it first by having spectacular content that everybody wants to see", Netflix CEO Reed Hastings said Monday during a discussion of the company's first-quarter results.