Netflix earnings: $1.15 per share, vs. expected EPS of $1.16

CNBC with Reuters
Netflix: Tremendous adoption of on demand

Netflix reported slightly lower-than-expected earnings while revenue was in line with estimates Monday, thanks to robust growth in users. Shares rallied in extended hours trading.

The video-streaming company reported earnings of $1.15 earnings per share and revenue of $1.34 billion in the second quarter. Wall Street expected Netflix to report earnings of $1.16 a share on $1.34 billion in revenue, according to a consensus estimate from Thomson Reuters.

Shares of the company rose after the closing bell. (Click here to track its shares in extended trade following the report.)

Quarterly profit more than doubled, boosted by strong user growth.

"We've seen really tremendous adoption of on-demand viewing," CEO Reed Hastings said during a livestream video interview following the earnings report. "There's probably no better symbol of how strong this on-demand phenomenona [is] than to tell you that during the World Cup we were concerned that we would see a drop off around the world, particularly in Brazil."

Netflix said in a press release that it has more than 50 million members in over 40 countries, adding another 1.69 million subscribers in the second quarter, beating forecasts for 1.46 million users.

Read More What investors want to hear in Netflix's earnings

For the third quarter, Netflix expects 1.3 million net additional users in the United States, compared to the same quarter last year.

Internationally, the company said it ended the second quarter with 13.8 million international members, logging a year-over-year growth of 78 percent.

In late May, Netflix announced significant expansion plans into Germany, Austria, Switzerland, France, Belgium and Luxembourg later this year. The move follows its earlier launches into the United Kingdom and Ireland, Denmark, Finland, Norway, Sweden and the Netherlands.

"That could cap the profitability in the near term as they roll out to additional countries, but I think as long as the [subscriber] growth is there, the stock can continue to work in that environment," said Mike Olson, senior research analyst at Piper Jaffray who has a "neutral" rating on Netflix.

Read MoreNetflix letting its DVD business die a little faster

The company's domestic DVD business has slowly shrunk over the past few years, and the company stopped Saturday DVD delivery last month.

Brad Lamensdorf, portfolio manager for Ranger Alternative Management, is short on the media company.

"When you look at their business model," he said, "50 percent of their business is in the DVD business, which is a dying business, it's going away. They're using this cash flow to try to get this international growth going. Their [subscribers] are up and that's great, but they're not converting any of this revenue to free cash flow."

"There are going to be a lot of competitors, and we just do not think that their content is that great," Lamensdorf said.

Netflix more than doubled its nominations for the 2014 Emmy awards from the previous year with 31 nods.

Read MoreAnd the 2014 Emmy nominees are...

—By CNBC.com. CNBC's Julia Boorstin and Reuters contributed to this report.