Netflix’s (NASDAQ: NFLX) stock surged 20% after hours on Monday as original hit shows like Stranger Things and Narcos helped the streaming video company crush Wall Street expectations.
Netflix beat on both international and domestic subscriber additions by a hefty margin, as well as on EPS. Netflix’s revenue was roughly in line with Wall Street forecasts.
See the key numbers below:
- Q3 EPS (GAAP): $0.12 versus Wall Street forecasts of $0.06, and Netflix’s guidance of $0.05.
- Q3 Revenue: $2.29 billion, up 36% year-over-year, versus Wall Street forecasts of $2.28 billion.
- Q3 US subscriber growth (net additions): 370,000 versus Wall Street forecasts 304,000 compared to Netflix guidance of 300,000.
- Q3 international subscriber growth (net additions): 3.2 million versus Wall Street forecasts 2.0 million, in line with Netflix’s guidance.
- Q4 subscriber growth guidance (domestic): 1.45 versus Wall Street forecasts of 1.0 million.
- Q4 subscriber growth guidance (international): 3.75 million versus Wall Street forecasts of 3.1 million.
Netflix credited its huge beat on subscriber additions to “excitement around Netflix original content.” The company particularly mentioned cult hit Stranger Things and the second season of Narcos.
Internationally, Netflix mentioned its localization efforts in both Poland and Turkey, which Wall Street analysts suggested was spurring interest in the service over the last few weeks.
As for China, Netflix said it has no immediate plans to enter the country.