Updated from 4:46 p.m. to include the comments from conference call infused throughout the story.
NEW YORK (TheStreet) -- Netflix (NFLX) shares rose after the online entertainment company posted first-quarter results that were mixed, and it topped 35 million streaming subscribers. The company also announced a price increase for new members.
Los Gatos, Calif.-based Netflix earned 86 cents a share on $1.27 billion in revenue for the quarter, as the company surpassed 35 million streaming subscribers, of which 34.38 million are paying. Streaming margins hit 25.2% in the first quarter. Analysts surveyed by Thomson Reuters were expecting the company to earn 83 cents a share on $1.266 billion in revenue for the first quarter.
On the conference call, CEO Reed Hastings continued to reiterate that Netflix's total addressable market in the U.S. is between 60 million and 90 million households, but throughout the world, it's "everyone who loves TV and has the Internet."
Shares were rising in after-hours trading, gaining 6.7% to $371.97.
In the letter to shareholders, CEO Hastings said the company's international performance was strong. Netflix added 1.75 million international subscribers during the quarter, bringing its total to 12.7 million members. "Due to rapid growth in our international segment we aren't experiencing the same level of seasonality as in the U.S., and we anticipate over 50% y/y growth in Q2 net additions despite slight headwinds from the World Cup," Hastings said in the letter.
Hastings noted that the company is on a path to achieve profitability this year from its international ventures, though continued and substantial expansion in Europe, along with investments in content and marketing will keep the unit at a net loss.
When the company announced its fourth-quarter results, Netflix said it expected to earn 78 cents a share for the first quarter, above the consensus estimate of 76 cents a share.