Netflix’s performance in fiscal 2Q17
Netflix (NFLX) reported its fiscal 2Q17 earnings results on July 17. The company posted revenues of $2.8 billion in fiscal 2Q17, up 32.3% year-over-year. Netflix had a global operating margin of 4.6% in fiscal 2Q17 with an operating income of $128 million. The company’s revenue and operating income figures exceeded internal estimates in fiscal 2Q17.
Netflix seems to be on track to achieve a global operating margin of 7% in fiscal 2017. The company had a net income of $66 million and diluted EPS (earnings per share) of $0.15 that missed consensus analysts’ EPS estimates of $0.16 per share.
Netflix’s stock price closed at $161.70 on July 17. The company’s stock price rose 10.7% in after-hours trading. Netflix’s stock price has risen 64.4% in the past year and 30.6% year-to-date.
Netflix’s streaming business
Netflix recorded total streaming revenues of $2.7 billion in fiscal 2Q17, up 35.8% year-over-year. The company had total streaming memberships of 103.9 million, which exceeded its internal forecast by 2 million members. The company had net additions of 5.2 million members in fiscal 2Q17—which far exceeded its internal forecast of 3.2 million members.
In the next parts of this series, we’ll look at what’s driving subscriber growth for Netflix in the United States (SPY) and international markets.