Netflix, Inc. 2Q:17 Earnings: Subscriber Beat Drives Surge In Stock Price

The Netflix (NFLX) 2Q:17 earnings report was released after closing bell tonight. Netflix posted earnings of 15 cents per share on $2.79 billion in revenue, compared to the consensus estimates of 16 cents per share in earnings and $2.76 billion in revenue. In last year’s second quarter, the streaming video service provider reported earnings of 9 cents per share on $2.1 billion in revenue.

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Netflix 2Q:17 earnings numbers

The company’s total revenue jumped 32.3%. Streaming revenue grew 35.8% year over year to $2.67 billion in the second quarter. U.S. streaming revenue amounted to $1.47 billion with a contribution margin of 37.2%, compared to the year-ago figures of $1.21 billion and 34.3%. International streaming revenue rose to $1.2 billion from $758 million a year ago. The contribution margin was still in the red, although it was a strong improvement, from -9.1% a year ago to -1.1% in this year’s second quarter.

Netflix added a total of 5.2 million subscribers, compared to the Wall Street consensus of 3.23 million. That brought the company’s total subscriber base to 103.95 million, including 99.04 million paid subscribers. In the year-ago quarter, Netflix had 1.68 million net adds and a total of 83.18 million subscribers, including paid and unpaid.

In the U.S., the company added 1.07 million subscribers, while outside the U.S., it added 4.14 million subscribers. Wall Street had been expecting the company to add 800,000 domestic paid net subscribers and 2.7 million international paid net subscribers At the end of the second quarter, Netflix had 51.9 million domestic subscribers and 52.03 million international subscribers.

Netflix provides guidance for third quarter

The Netflix 2Q:17 earnings report also included the company’s third-quarter guidance, as has been standard for the company. Management projects total revenue of approximately $2.97 billion, an increase of 29.6% year over year. They expect earnings of about 32 cents per share for the third quarter.