All eyes are on video-streaming giant Netflix, Inc. (NFLX), which just released its first-quarter earnings results after the closing bell. While the company will likely champion its strong earnings and revenue growth, its membership numbers missed company guidance and fell short of the highly-anticipated 100 million subscriber threshold.
In the first quarter, Netflix saw domestic net additions of 1.42 million members, bringing its total number of domestic subscribers to 50.85 million. In its international streaming segment, Netflix saw net additions of 3.53 million members. This means Netflix now has about 47.89 million international members.
(Also Read: Netflix Posts Earnings Beat, Stock Dips on Weak Guidance)
Added together, Netflix now has 98.75 million total subscribers. This fell just short of the 99 million members that the company guided for in its previous report. Netflix now expects to cross the 100 million subscriber threshold in the second quarter; the company projected that it will have 101.95 million total members at the end of Q2.
Netflix was likely prepared for some investors to be disappointed by today’s membership figures, and it was careful to note that it does not believe membership growth is the key figure to note in today’s report.
“For the last several years we’ve had flat operating margins due to established markets funding international expansion with every spare dollar we had… the major indicators of our progress were member and revenue growth and US contribution margins,” the company said in its shareholder letter. “Starting this year, we can be primarily measured by revenue growth and (global) operating margins as our primary metrics.”
Netflix was able to beat earnings expectations, posting earnings of 40 cents per share against the Zacks Consensus Estimate of 38 cents per share. Quarterly revenues of $2.637 billion just missed our consensus estimate of $2.641 billion, but this figure still represents growth of nearly 35% year-over-year.
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