Netflix, Inc. (NASDAQ:NFLX) reported second-quarter earnings the meet the consensus estimates of Wall Street analysts. According to the online video streaming company, its earnings were $1.15 per share on $1.35 billion in revenue.
During the same period a year ago, Netlix, Inc. (NASDAQ:NFLX) posted $0.49 in earnings per share on$1.06 billion in revenue.
According to the online video streaming company, its U.S. contribution margin climbed 460 bps to 27.1% year-over-year as its revenue growth was faster than spending on content and marketing.
The stock price of Netflix, Inc. (NASDAQ:NFLX) climbed almost 2% to $451.95 per share today.
Netflix, Inc. (NASDAQ:NFLX) said the number of its subscribers reached more than 50 million worldwide, which is higher than its $49.81 million estimate for the second quarter.
According to the online video streaming company, its domestic membership climbed to 36 million due to the popularity of its original series Orange is the New Black and other original content. Its international membership increased to 13.8 million, up by 78% year-over-year.
Netflix, Inc. (NASDAQ:NFLX) projected that it will achieve $1.3 million net additions for the third quarter.
The online video streaming company said it will be launching its service in Australia, Belgium, France, Germany, Luxembourg, and Switzerland in September.
According to Netflix, Inc. (NASDAQ:NFLX), its international segment incurred $15.3 million losses, but it is rapidly approaching profitability as the company sees improvements across all existing markets. The management of the company was convinced to invest aggressively in global expansion after experiencing broad success from Argentina to Finland.
Netflix, Inc. (NASDAQ:NFLX) is expecting a contribution loss of $42 million in its international segment as a result of its expansion in Europe for the third quarter. The company reiterated its plan to “run at about global break-even to fund investment in global expansion.
Original content performance
Netflix, Inc. (NASDAQ:NFLX) boasted that its original content Orange is the New Black is performing well. According to the company, it is the most-watched series in all of its territories. Earlier this month, the show received a total of 31 Emmy nominations, which is two times more than the 14 nominations the company received in its first year of releasing original programming. House of Cards received 13 nominations this year. The Square received 4 nominations.
Orange is the New Black was nominated for Outstanding Comedy Series while House of Cards for Outstanding Drama Series.