Netflix Inc. reported its first quarter earnings on April 15, with net addition of 4.9 million new subscribers.
The January to March 2015 quarter was good for Netflix in terms of subscription. International, domestic and entire streaming accounts reached 40 million, 20 million and 60 million, respectively.
Netflix Inc. in the first quarter 2015, added almost 4.9 million more members to its streaming network compared to previous quarter, the company now have around 62.27 million members. However, the company was targeting 4.1 million new subscribers but it was able to cross the target.
It’s the consistent fourth quarter in which the streaming giant was able to add more international subscribers than domestic. The stateside still contains 70% of revenue.
Revenue of the company rose by 24% since the previous year quarter to reach $1.57 billion, which is according to the estimate by Wall Street’s top line forecast, but reported outcomes were held back due to falling foreign currency. Company’s net profit of $0.38 per share was much less than analysts’ estimate of $0.69 and its previous quarter net profit of $0.86 per share , but the reason for this miss was mainly because of exchange rate volatility. The company would have pocketed a $0.77 per share profit for foreign exchange volatility.
The better than expected addition of subscription did not come as a surprise, as last week Netflix tweeted “Netflix members watched 10 billion hours last quarter. That’s about 905,892,833 seasons of @HouseofCards”
Things for Netflix are moving into the right direction. The Online Streaming company is seeking to extend its streaming base by almost 2.5 million in the next quarter. That number does not look attractive after adding almost twice of this in the first quarter, the reason is past results shows that the 2nd quarter is usually sleepy for the company. It added only 1.7 million users in the prior year second quarter.
After the announcement of first quarter result, Netflix stock went down in the first 45 minutes on Wednesday. The stock was 3.25% down to $475.46. However, during after hour trading it went up by almost $59.
Netflix stock closed at $475.46 after falling by 0.68 on Wednesday. The Los Gatos based company has 52 week low and high of $471.55 and $480.93, respectively.
No comments:
Post a Comment