Tuesday, July 18, 2017
Netflix Beats Subscriber Targets
Shares of the streaming-television pioneer jumped $16.82 to $178.55 in after-hours trading, beating their all-time intraday high of $166.87 on June 8.
According to Reuters, Netflix expects foreign growth to bring its first full-year profit for overseas markets in 2017, the company said in a letter to shareholders.
At the end of June, Netflix for the first time recorded more subscribers abroad than in the United States - 52.03 million vs. 51.92 million.
A strong slate of TV series, such as "13 Reasons Why" and the latest season of "House of Cards," brought in more customers than Netflix had predicted for the second quarter, typically its slowest season of the year. Wall Street had expected 3.2 million new customers worldwide.
Netflix added 4.14 million monthly subscribers in non-U.S. markets, far more than the average analyst estimate of 2.59 million, according to data from analytics firm FactSet.
In the United States, it signed up 1.07 million subscribers, beating analysts' average estimate of 631,000.
Netflix is spending $6 billion a year on content to win new subscribers in a quest to become the world's top movie and TV streaming service, even as it faces a slowdown in U.S. customer growth. It is customizing content for different countries and adding shows in various languages.
The Los Gatos, California-based company estimated negative free cash flow "for many years" as it buys more content to attract new subscribers. Netflix faces competition at home and abroad from streaming video providers such as Amazon.com Inc's Prime Video and Alphabet Inc's YouTube.
Posted 3:15:00 AM