Online TV streaming company, Netflix, announced on Monday that it added a whopping 5.2 million subscribers in its second quarter. Soon after the announcement, Netflix stock jumped more than 10%, with an all-time intra-day high of $166.87 per share.
Since Netflix’s last quarter earnings report, the site showcased new seasons of popular shows including “House of Cards” and “Orange is the New Black.” “13 Reasons Why” also turned out to be a major hit.
This financial report comes as the Emmy Awards are just around the corner. Netflix shows have cumulatively received 91 nominations.
“In Q2, we underestimated the popularity of our strong slate of content which led to higher-than-expected acquisition across all major territories,” wrote CEO Reed Hastings in a letter to investors.
Apart from this, the company’s net income rose to $66 million, beating analyst predictions of $41 million. The EPS (earnings per share) is $15 cents/share, which is a little shy of analyst predictions of $16 cents.
With a series of super hit shows like “Stranger Things,” “The Crown,” and “13 Reasons Why,” the company in this quarter marked the release of 14 new shows and an increased investment in original as well as exclusive content.
“We expect Netflix’s original content ramp to continue to drive accelerating international net additions, especially as Netflix increases investment in local content overseas and expands genres such as movies and non-fiction,” wrote UBS analyst Doug Mitchelson in a note to clients.
The company still faces competition from major Silicon Valley companies including Amazon, which is in the process of ramping up investments in original content for its Amazon Prime service, and Apple, which is tapping into this field with shows like “Planet of the Apps”.
Megha Shah for TechFunnel.com