Netflix Reports 125 Million Subscribers During First Fiscal Quarter

Netflix shares were up by almost 8% during the after-hours trading on Monday despite trading lower during the regular trading session to trade at around $324.32 per share after hitting an all-time high of $333.98 last month and has risen more than 60% since the beginning of the year.This was due to the growth in the company’s quarterly revenue as well as 125 million subscribers globally being recorded by the company by the end of the quarter.

Growing Subscribers

After reaching its first 100-million subscriber earlier last year, the company has now topped 125 million subscribers for the three months that ended in March 2018. Netflix who originally forecasted 1.45 million additional users from the United States for the quarter instead reported 1.96 million new users exceeding both its own and analyst expectations.

Netflix also saw a rise from its international subscribers of around 23.7 million for the quarter beating most Wall Street expectations of another 19.6 million new subscribers internationally.

Prior to the earnings report, analysts have projected upbeat user growth for the company from both international and U.S. subscribers with some analysts predicting a record of 217 million subscribers for the company by the year 2025.

Currently, the company is planning to spend as much as $17.9 billion for its content which is higher than its investment of $15.3 billion last year. Reports have revealed that Netflix has been trying into hiring a number of top producers during the past couple of months as a part of their efforts in ramping up the quality of its originally produced content as well as improve overall user experience.

Earnings Report

Netflix’s revenue rose by 40% for the three months that ended in March to $3.69 billion from $2.64 billion during the same quarter last year

The revenue of the company was up by 40% year over year to $3.7 billion compared to their revenue of $2.64 billion during the same quarter last year. Without counting losses, the revenue of the company from its streaming video services was up by 43%. However, the company was still able to incur losses from its ailing DVD rental business.

Despite this, a continued growth outlook is seen by analysts for the company driven by the demand for its original content. The company has shifted its focus in increasing its investment for the production of original shows this year with plans to release more than 10 new seasons of existing original shows.

See also: Netflix to Deliver Q1 2018 Earnings

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