Stocks/Earnings

Netflix Blows Out Q2 Streaming Sub Estimates

Stock rises as Netflix adds 5.2 million in period versus an anticipated 3.2 million 7/17/2017 4:21 PM Eastern

Noting that it “underestimated the popularity of our strong slate of content,"  Netflix added 5.2 million streaming subs worldwide in the second quarter compared to expected additions of 3.2 million.

Netflix, which saw higher-than-expected acquisition across all major territories, ended Q2 with 103.95 million streaming subs worldwide, including 52.03 million coming way outside the U.S.

Netflix noted in its Q2 shareholder letter that its international business now accounts for 50.1% of its total membership base. Citing ongoing progress outside the U.S., Netflix said it expects positive international contribution profit for full year 2017, which would be a first-time achievement for the company’s international business segment. 

Looking ahead, Netflix expects to add 4.4 million streaming subs in Q3, including 3.65 million coming from its international base.

Netflix posted Q2 total revenue, which includes its DVD subscription service, of $2.78 billion, up from $2.1 billion in the year-ago quarter.  Streaming revenue for the period was $2.67 billion, versus $1.96 billion a year earlier.

Netflix expects to pull in total Q3 revenues of $2.96 billion.

Netflix shares were up $13.38 (8.27%) to $175.08 each in after-hours trading Monday.

The company said iT plans to continue to complement its direct-to-consumer approach with more deals with MVPDs and ISPs, pointing out a partnership announced in Q2 with Altice/SFR France, whereby Netflix is being sold in a package with high-speed Internet and TV services.

RELATED: Netflix Joins Comcast’s ‘Watchathon Week'

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