Netflix Gets Earnings Pop

The stock adds 4% on a 47% jump in quarterly revenue.
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Online movie service

Netflix

(NFLX) - Get Report

rose 4% late Monday after posting a 47% rise in first-quarter revenue.

The Los Gatos, Calif., company made $4.4 million, or 7 cents a share, for the quarter ended March 31. That reverses the year-ago loss of $8.8 million, or 17 cents a share. Revenue rose 47% from a year ago to $224.1 million.

Analysts surveyed by Thomson Financial had expected the company to earn 6 cents a share on $221.2 million in revenue.

"Our record first-quarter performance provides additional evidence of the strength of our business model and our market, and reinforces our confidence that we can achieve our aggressive goals for subscriber and earnings growth," said Netflix CEO Reed Hastings. "It has also led us to increase our near-term guidance for subscriber and revenue growth."

Customer churn, reflecting defections, fell to 4.1% in the latest quarter, down from 5% during the same quarter last year.

Netflix ended the quarter with 4.8 million total subscribers, up 61% from a year ago. Netflix added 1.3 million gross subscribers during the quarter.

By the end of the second quarter, Netflix expects to have 5.1 million to 5.3 million users. The company expects to make between $9.5 million and $13.5 million on revenue of between $238 and $242 million.

Wall Street analysts expect Netflix to earn 22 cents a share on revenue of $236.6 million during the second quarter.

Shares were up $1.26 to $32.50 In after-hours trading on Instinet.