Domestic net additions in the first quarter came in at 2.3 million, topping estimates for 1.88 million. Internationally, the company added 2.6 million subscribers, compared to projections of 2.3 million. The company forecasts second-quarter net adds of 0.6 million, similar to the year-ago quarter.
Netflix's closely watched total streaming contribution margin rose to 17.7 percent, from 15.6 percent a year ago.
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The company attributed the strong U.S. growth, in part, to it's "ever-improving content, including the launch of the third season of 'House of Cards' and new shows 'Unbreakable Kimmy Schmidt' and 'Bloodline.'"
Ross Gerber, CEO and president of Gerber Kawasaki, said the positive investor response was all about subscriber growth.
"It's so overvalued yet it just goes higher when they totally miss on earnings because it is about subscriber growth. I really do think that's important long term," Gerber told CNBC's "Closing Bell" on Wednesday.
"This company is a leader in the future of television and that's what they're doing so well. Even though they have these huge competitive issues for them on the horizon, I still think that Netflix will be a core part of most people's entertainment system in the future."