Netflix continues to grow, adding 5.3 million net subscribers this past quarter.
And it’s willing to spend the money to continue that trajectory, with a new content budget of between $7 billion to $8 billion for next year. The figure is up from the $7 billion figure chief operating officer Ted Sarandos previously said to Variety.
Netflix latest earnings report beat analysts’ estimates, mostly on the back of its strong subscription net additions. The company reported earnings on Monday after the bell. Shares were up more than 2 percent during after hours trading after earnings posted.
- Revenue: $2.98 billion vs. $2.97 billion expected Thomson Reuters consensus estimate
- EPS: 37 cents per share vs. 32 cents per share, adjusted, according to a Thomson Reuters consensus estimate
- Subscriber net ads: 5.3 million versus 4.5 million, according to a Street Account estimate
The company now has about 109.3 million subscribers globally. Netflix said it added 850,000 subscribers in the U.S., ahead of the 810,000 Street Account estimate for the quarter. It boomed internationally, signing up 4.45 million subscribers versus the 3.69 million Street Account estimate. The subscription additions were up 49 percent year over year.
The company also issued guidance for the next quarter. The company also said it will spend $7 billion to $8 billion on content next year, up from the $7 billion.
- Q4 revenue: $3.27 billion versus the $3.15 million Thomson Reuters estimate
- Q4 EPS: 41 cents per share vs. 33 cents per share, adjusted, according to a Thomson Reuters consensus estimate
- Q4 Subscriber net ads: 6.3 million versus 6.25 million, according to a Street Account estimate
Analysts projected Netflix would post strong earnings, including a large number of new subscribers despite some subscription plan rate hikes. The stock price hit over $200 for the first time on Friday.
