Shares of Netflix (NFLX) - Get Netflix, Inc. Report were jumping 8.5% to $144.60 in after-hours trading on Wednesday after the streaming giant reported stronger-than-expected results for the fourth quarter of 2016 and gave an upbeat outlook for the first quarter of 2017.
Follow TheStreet's live blog of Netflix's earnings and conference call here.
Following the market close, Netflix posted adjusted earnings of 15 cents per share on revenue of $2.48 billion for the quarter. Analysts surveyed by FactSet were looking for adjusted earnings of 13 cents per share and $2.47 billion in revenue.
The Los Gatos, CA-based company said it had 1.93 million new U.S. subscribers during the quarter, easily surpassing Wall Street's expectations for 1.4 million new domestic subscribers. Netflix also saw 5.12 million new international subscribers, which crushed analysts' predictions for 3.7 million new international subscribers.
The company noted in its letter to shareholders that more than 47% of its subscribers are now based outside of the U.S.
"This growth was very broad based geographically as our original content continues to be well-received all over the world," Netflix added in a statement.
For the first quarter of fiscal 2017, Netflix said it expects to post 1.5 million new U.S. subscribers and 3.7 million new overseas subscribers. Analysts surveyed by FactSet were looking for Netflix to see 1.76 million new U.S. subscribers and 3.2 million new international subscribers in the first quarter.
The company added that the decline in new U.S. subscribers reflects a "difficult comparison" compared to the year-ago quarter where it exceeded its new subscriber forecast by 27%.
Netflix forecasts adjusted earnings of 37 cents per share on revenue of $2.52 billion for the first quarter of 2017. Wall Street is looking for adjusted earnings of 18 cents per share and $2.59 billion in revenue.
Netflix noted in its letter to shareholders that the over-the-top content market has become increasingly saturated as more companies have entered the space, including Amazon (AMZN) - Get Amazon.com, Inc. Report , which expanded its Prime Video Service in 2016.
"In short, it's becoming an internet TV world, which presents both challenges and opportunities for Netflix as we strive to earn screen time," the company explained.