How much longer can Netflix keep this up?
The video streaming giant just posted its earnings for the first quarter of 2017, and Reed Hastings and company once again blew subscriber growth estimates out of the water. Globally, Netflix added 7.41 million new subscribers, a record for the quarter and far higher than a consensus estimate of 6.5 million cited by CNBC. Netflix shares shot up more than 6% in after-hours trading.
Here are the key stats from the report:
- Total subscribers: 125 million
- U.S. subscriber Q1 adds: 1.96 million (compared to 1.42 million in Q1 17)
- International subscriber Q1 adds: 5.46 million (compared to 3.53 million in Q1 17)
- Total Q1 revenue: $3.7 billion (compared to $2.6 billion in Q1 17)
- Earnings per share: 64 cents (compared to 40 cents in Q1 17)
- Net income: $290 million (compared to $178 million in Q1 17)
Three months ago, Netflix added a total of 8.33 million subscribers in the quarter, far higher than the estimates of 6.34 million. Of course, all this growth is not cheap: Netflix says it expects content costs of $7.5 billion to $8 billion this year.
Netflix will hold a conference call with analysts later this afternoon. We’ll have a full report, so stay tuned.