Netflix posts impressive earnings as subscriber base jumps by 7 million
Following the close of trading today, Netflix posted its earnings report for the September quarter and easily bested analyst expectations. During the latest quarter, Netflix generated $4 billion in revenue with an EPS of $0.89. Notably, investors on Wall Street were anticipating Netflix’s EPS to fall somewhere in the $0.68 range. Not surprisingly, shares of Netflix are up more than 11% in after-hours trading.
Financial metrics aside, the streaming giant did a pretty solid job of adding new subscribers for the quarter. All told, Netflix during the September quarter added nearly 7 billion new subscribers, a figure which also bested estimates on Wall Street. As a point of contrast, Netflix during the same quarter a year-ago added 5.3 million new subscribers. As it stands now, Netflix now boasts upwards of 137 million subscribers across the globe.
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Looking ahead, Netflix anticipates that it will add 9.4 million new subscribers during the 2018 holiday quarter, a figure which eclipses the 8.3 million new subscribers the company added during last year’s holiday quarter.
Taking a look at Netflix’s letter to shareholders, the streaming giant took some time to talk about its in-house film and TV studio:
It was just two years ago when we began building the third category: a film and TV studio within Netflix. Some of our notable owned-titles in addition to Stranger Things include: Big Mouth, The Ranch, Bright, Godless, The Kissing Booth, 3%, Dark, Sacred Games and Nailed It. In addition to reducing our reliance on outside studios, this initiative provides us with greater control over the content we create (e.g., long term global rights), the ability to strengthen title-brand-love and franchise value (like consumer products) and potentially lower costs (as we can avoid the markup 3rd party studios charge us). To do
this, we’ve had to develop new capabilities to manage the entire production process from creative support, production planning, crew and vendor management to visual effects, to name a few.
Netflix also took some time to boast about the bevy of awards and nominations it has enjoyed as of late:
This year, Netflix originals led with 112 Emmy nominations spanning 40 of our shows, docs and 4 specials across nearly every category and we’re humbled to have tied HBO with the most number of Emmy wins with 23.
All in all, it was a stellar quarter for Netflix. Presumably, we’ll hear some more items of interest during the company’s earnings conference call.
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