Netflix is growing - and fast.
But in the last 90-day period, the streaming service added more subscribers internationally than it did domestically. We know this because the company just announced its third quarter earnings, reporting $1.74 billion in revenue and $74 million in profit. For comparison purposes, it reported $110 million in profit during the same period last year.
Netflix therefore fell slightly short of what Wall Street analysts had predicted:$1.75 billion in revenue and earnings of 12 cents a share. Apart from the financial stuff, Netflix reported how well it's doing in terms of subscribers.
It added 3.62 million new subscribers, which includes 880,000 domestically and 2.74 million internationally, meaning Netflix beat its own expectations and now has 69.17 million subscribers worldwide. It is on target to hit 70 million by the end of the year. Although subscriber count is higher than expected, US growth didn't match expectations.
Netflix anticipated a 1.15 million increase in the US - based in part on the fact that it had a 980,000 subscriber boost in the US during the same period last year. In response to the sluggish growth, Netflix said it was due to "the ongoing transition to chip-based credit and debit cards" and its "inability to collect".
Nevertheless, Netflix predicted it'll add 1.65 million new subscribers in the US in the fourth quarter this year. Following the release of its earnings on Wednesday, Netflix stock dipped 6 per cent in after hours trading.
Tune into Netflix's webcast at 2 pm PST to hear comments from executives.