April 16, 2015
Company Now Boasts 62.3 Million Subscribers Worldwide
It was a big first quarter for Netflix.
The video-streaming service broke subscription records with the addition of 4.9 million new customers across the globe in just three months, surpassing the company’s estimates of 4.1 million.
Netflix now enjoys a very healthy customer base of 62.3 million worldwide with growth in both the U.S. and international markets surpassing expectations.
Netflix posted a 24 percent sales gain, earning 38 cents per share on revenue of $1.57 billion.
Its earnings per share would have been much higher — 77 cents per share in fact — Netflix said in a press release, but an unfavorable exchange rate hurt profits.
Despite the ever-increasing competition in the video-streaming market, Netflix contributed its success to its content.
“We think strong U.S. growth benefited from our ever-improving content, including the launch of the third season of House of Cards and new shows Unbreakable Kimmy Schmidt and Bloodline,” the company said in its press release. “In addition, retention continued to improve due to the growing value of our service overall. We are forecasting Q2 U.S. net adds of 0.6 million, similar to the year ago quarter.”
CEO Reed Hastings told analysts during a webcast that the company’s success can be attributed to its focus on three areas.
“We’ve continued to focus on the same things over the last couple years, improving the content, improving the streaming, improving the user interface, and we’ve seen the rewards of that in continued growth,” Hastings said.
Despite missing analysts expectations on its earning per share, Netflix’s stock was up 11.6 percent to $530.90 in after-hours trading.
Jennifer Cowan is the Managing Editor for SiteProNews.