The Netflix 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.
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.
Netflix also expects total streaming revenue of $2.86 billion, marking a 32.5% year over year growth rate. It expects total net subscriber adds of 4.4 million, including 750,000 U.S. net adds and 3.65 international net adds. In last year’s third quarter, Netflix reported 3.57 million net adds, including 370,000 domestic adds and 3.2 million international adds.
After the Netflix 2Q:17 earnings release, the company’s stock ripped higher in after-hours trades, climbing by as much as 8.64% to $175.67. The increase was probably driven by the beat on subscriber adds, which has driven the company’s stock price for quite some time. The company’s previous 52-week high stood at $166.87, putting it on track for a new record.