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Netflix (NFLX) Crushes Subscriber Growth Estimates, Adds 7.4 Million Users
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Netflix (NFLX - Free Report) just released its latest quarterly earnings report, and as per usual, investors were quick to dissect the video streaming behemoth’s results. Shares of Netflix are gaining in after-hours trading after it posted slightly better-than-expected earnings and revenue for the first quarter.
In addition to the company’s earnings and revenue results, investors are also interested in Netflix’s subscriber growth figures. Thanks in large part to an aggressive international expansion, Netflix has exploded in popularity around the world over the past few years—and its stock tends to respond to membership numbers more so than any other metric.
If it were up CEO Reed Hastings and the rest of the management team, Wall Street might focus more on the company’s margin expansion or audience reactions to its original programming. But to this point, investors have largely shown to be more concerned with subscriber figures.
This is why Netflix soared in the wake of its historic subscriber growth in the previous quarter, with net streaming additions of 8.30 million customers crushing the company’s own guidance and marking the best period on record for the platform.
Netflix’s record-breaking performance in Q4 added to the anticipation for today’s report. In its Q4 earnings release, management said it expected to add 4.90 million international subscribers and 1.45 million domestic subscribers in the quarter—although some analyst estimates were even more optimistic.
Here at Zacks, we prepare for marquee earnings reports by looking at our exclusive non-financial metrics consensus estimate file. The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Our consensus estimates were calling for Netflix to report 4.96 million net international streaming additions and 1.47 million domestic streaming additions.
According to today’s just-released report, Netflix saw international net adds of 5.46 million and domestic net adds of 1.96 million—beating both its own forecasts and our NFM estimates in each category.
Overall, Netflix posted net subscriber additions of 7.42 million in the quarter. The streaming platform now has about 125 total streaming members worldwide.
“We strive to entertain and to bring joy to people across the world through amazing stories. Our 125 million members provided us with $3.6 billion in streaming revenue in Q1. Our job is to spend this money wisely to increase our members’ delight,” the company said in earnings announcement.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Netflix (NFLX) Crushes Subscriber Growth Estimates, Adds 7.4 Million Users
Netflix (NFLX - Free Report) just released its latest quarterly earnings report, and as per usual, investors were quick to dissect the video streaming behemoth’s results. Shares of Netflix are gaining in after-hours trading after it posted slightly better-than-expected earnings and revenue for the first quarter.
In addition to the company’s earnings and revenue results, investors are also interested in Netflix’s subscriber growth figures. Thanks in large part to an aggressive international expansion, Netflix has exploded in popularity around the world over the past few years—and its stock tends to respond to membership numbers more so than any other metric.
If it were up CEO Reed Hastings and the rest of the management team, Wall Street might focus more on the company’s margin expansion or audience reactions to its original programming. But to this point, investors have largely shown to be more concerned with subscriber figures.
This is why Netflix soared in the wake of its historic subscriber growth in the previous quarter, with net streaming additions of 8.30 million customers crushing the company’s own guidance and marking the best period on record for the platform.
Netflix’s record-breaking performance in Q4 added to the anticipation for today’s report. In its Q4 earnings release, management said it expected to add 4.90 million international subscribers and 1.45 million domestic subscribers in the quarter—although some analyst estimates were even more optimistic.
Here at Zacks, we prepare for marquee earnings reports by looking at our exclusive non-financial metrics consensus estimate file. The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Our consensus estimates were calling for Netflix to report 4.96 million net international streaming additions and 1.47 million domestic streaming additions.
According to today’s just-released report, Netflix saw international net adds of 5.46 million and domestic net adds of 1.96 million—beating both its own forecasts and our NFM estimates in each category.
Overall, Netflix posted net subscriber additions of 7.42 million in the quarter. The streaming platform now has about 125 total streaming members worldwide.
“We strive to entertain and to bring joy to people across the world through amazing stories. Our 125 million members provided us with $3.6 billion in streaming revenue in Q1. Our job is to spend this money wisely to increase our members’ delight,” the company said in earnings announcement.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>