In its second quarter earnings release yesterday, Netflix reported that its total membership base grew 33% year-over-year, with 570,000 new domestic subscribers (despite a fee hike of $1 per month) and 1.12 million new international subscribers added this quarter. This increase of 1.69 million streaming customers was well above Netflix’s own estimate of 1.46 million. Netflix’s total streaming subscriber base is now 50.05 million, 13.8 million of which are outside the United States, with expansions into Germany, France, Austria, Switzerland, Belgium, and Luxembourg planned for September.
However, earnings were shy of estimates. Netflix’s profits rose to $71 million, or $1.15 per share, from $2.95 million or 49 cents per share in the same quarter last year. Revenue rose 25% to $1.34 billion from $1.07 billion. Analysts polled by Thomson Reuters expected earnings per share of $1.16 per share on revenue of $1.34 billion. Despite missing analysts’ estimates, the company’s results were more than double those of the same quarter last year.
“Fifteen years after launching our subscription service, we have over fifty million members enjoying Netflix in over 40 countries. As we gain new members, we are investing to further improve our content and member experience, and to expand the global availability of our service,” CEO Reed Hastings and CFO David Wells said in a press release. “We have a huge global opportunity ahead and a lot of challenges too.”