Netflix again has beat the street and its own guidance in adding new subscribers.
Netflix added 5.2 million additional new subscribers this quarter, a number well above the 3.2 million new subscriber goal the firm had. Even better news is, more than 4 million of those new subscribers are international viewers. The firm added more than 1 million domestic subscribers, aw ell.
Well the subscriber numbers are the ones Wall Street seem to cares about most. Netflix reported earnings of 15 cents per share, just below the 16 cents forecasted. While the company reported $2.79 billion in quarterly revenue (which topped estimates and was up 32% year-over-year), its $65.6 million in quarterly profits also fell short of the $68.5 million estimated by analysts.
In a letter to shareholders, Netflix attributed the subscriber increase to the surplus of popular original content that debuted on the streaming service during the second fiscal quarter—which is historically a weak quarter for subscriber gains.
“In Q2, we underestimated the popularity of our strong slate of content which led to higher-than-expected acquisition across all major territories,” the company said in its earnings report.
The firm added additional $1.1 billion in debt to fund its content making. The service now has $4.8 billion of long term debt.
Netflix is spending more than $6 billion on original content this year, up by $1 billion from last year
