Netflix has had another stellar quarter, beating analyst expectations with nearly $3 billion in revenue and over 5 million new subscribers. The bulk of those new customers came from outside the US: Just 850,000 new additions came from within the States, while there were 4.45 million new international subscribers.
However, Netflix once again had to borrow to make the machine work. The ever-rising cost of producing original content means that Netflix is hard-pushed for cash, explaining the recent price hike in the US. Analysts expect that price hike to hit international subscribers later this year or early next, as well.
However, the news was well received all around, and Netflix’s shares hit an all-time high of $202 per share today. Analysts significantly underestimated Netflix’s subscriber additions: estimates put it at 4.5 million adds worldwide, which Netflix handily beat with 5.3 million new customers coming aboard. Subscription additions were up 49 percent year-on-year, largely driven by Netflix’s recent international expansion.
The growth train doesn’t appear to have many brakes, either. Netflix increased the amount it’s earmarking for new content next year, up to $8 billion from $7 billion. Subscriber addition estimates are also up, to 6.3 million for Q4 2017.