Netflix met earnings and revenue estimates for 1Q18
Streaming giant Netflix (NFLX) had yet another stellar quarter in 1Q18. It reported its quarterly results on Monday, April 16. The company met revenue and earnings expectations and blew past subscriber growth expectations. Netflix generated revenue of $3.7 billion in 1Q18, a 40% surge from the same quarter last year, while analysts were expecting $3.69. The company’s net profits jumped 62.9% YoY to $290 million, or $0.64 per share, compared to $0.40 in 1Q17.
The company’s stock surged 9.2% on Tuesday and caused a broader market rally with the tech-rich Nasdaq Composite Index rising 1.7% on Tuesday. Netflix’s stock closed on Tuesday at $336.06, an all-time high.
Netflix’s subscriber base continues to swell
Netflix’s subscriber base continues to grow and exceeded expectations yet again. Subscriber growth is a major indicator of the company’s health, as it is the best predictor of future revenue growth. The company added 7.4 million subscribers in 1Q18 compared to analyst estimates of around 6.5 million. Netflix now has 125 million subscribers worldwide.
The company added 8.3 million subscribers in 4Q17. Since the company reported its 4Q17 earnings in January 2017, the company’s stock has skyrocketed. The stock has surged by a staggering 75.1% year-to-date despite the broader market correction. The stock has climbed by an astronomical 201.4% over the last 24 months.