Netflix Q2 2017 earnings: LIVE



Ethan
Miller/Staff/Getty Images


After missing subscriber growth targets last
quarter
, Netflix soared past them in Q2, both on the domestic
and international fronts.

Netflix added a whopping 5.2 million total subscribers, versus
the company forecast of 3.2 million. Netflix’s Q2 revenue
and EPS were roughly in line with what Wall Street was expecting.

Netflix rose 8% in the immediate aftermath of its earnings
report, hitting an all-time high in after-hours trading.

What caused Netflix’s growth to surge? 

“In Q2, we underestimated the popularity of our strong slate of
content which led to higher-than-expected acquisition across all
major territories,” Netflix wrote in its earnings letter.

And the party will keep going in Q3, according to Netflix.

Netflix said that is “assumes much of this momentum” in
subscriber growth will continue going forward, which is great
news for investors, as some on Wall Street were bracing for weak
guidance. Q3 will also have a favorable comparison to last year
for Netflix, when Q3 saw Netflix’s price increase — dubbed
“un-grandfathering” — hurt its subscriber growth. 

Here are the key numbers:

  • Q2 EPS (GAAP): $0.15 per share versus
    Wall Street expectations of $0.16.
  • Q2 revenue: $2.785 billion, up 32.3%
    year-over-year, and compared to Wall Street
    forecasts of $2.76 billion.
  • Q2 US subscriber growth (net additions):
    1.07 million versus Wall Street expectations of 633,000,
    and Netflix guidance of 600,000.
  • Q2 international subscriber growth (net
    additions):
    4.14 million versus Wall Street
    expectations and Netflix guidance of 2.6 million.
  • Q3 revenue forecast: $2.969 billion.
  • Q3 US subscriber growth forecasts (net
    additions): 
    0.75 million.
  • Q3 international subscriber
    growth forecasts (net additions):
    3.65 million.

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