Netflix crushes estimates with record quarter, Companies & Markets News & Top Stories

Netflix’s shares haven’t managed to climb back to a record set in July but they remain up 77% for the year

Netflix’s shares haven’t managed to climb back to a record set in July but they remain up 77% for the year

Netflix never shares any actual viewing metrics for single titles, but the company gave us another indicator for the success of "To All the Boys I've Loved Before" in the form of Instagram data Tuesday. Net income came in at 89 cents per share, beating Wall Street's number by 21 cents a share. Netflix added 1.09 million subscribers in the USA, and 5.87 million internationally, bringing the total number of subscribers to 137 million. Subscriber growth was stronger than expected in the US and overseas.

Jim Nail, analyst at Forrester Research, said the latest figures suggested that the second quarter result had been an "aberration, likely the results of a somewhat low volume of new content".

Watch Netflix trade in real time here.

Of course, the quarter also attracted its share of controversy, including the debut of Insatiable, which earned accusations of fat-shaming. The Faangs have driven stock markets to record highs and Netflix's shares leaped 15% in after hours trading. Netflix said it expects subscribers to grow by another 9.4 million in the fourth quarter, up 13% compared to a year ago. Said eMarketer media analyst Paul Verna.

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Netflix had become a hot ticket among tech stocks after cementing its place among the FANGs, a group of lucrative investments including Facebook, Amazon and Google, but it has found itself in an increasingly crowded streaming market. Streaming revenue surged 36%, reaching almost $4 billion in the quarter - a performance that matched Wall Street's forecasts of $4 billion. Netflix signed up 6.96 million customers in the quarter, according to a statement on Tuesday (Oct 16), boosting its global total to 137.1 million. "Even the United States number was better than I thought it would be".

In all, Netflix added nearly 2 million more subscribers than the 5.09 million Wall Street expected. While the company reports a net profit, it spends more than it takes in and borrows frequently to finance its programming budget.

Media companies that once sold programs to Netflix for hundreds of millions of dollars are now building their own on-demand services to compete head on.

During the September quarter, Netflix added about 676 hours of original programming in the United States, a 135 percent increase from a year earlier, according to Cowen and Co analysts. While most of that still funds shows licensed from other companies, original programs account for a growing share. Netflix doesn't break out its customers by market, with the exception of the U.S., though most analysts agree the UK, Brazil, Canada and Mexico rank among the company's largest.

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