Netflix investors have been piling into the stock this year on optimism for global expansion. But the company's financials on Monday show that there's plenty of domestic growth remaining.
Netflix added 7.41 million subscribers this past quarter, bringing the total to 125 million. It was only expected to add 6.5 million subscribers, according to a StreetAccount consensus estimate. The majority of the unexpected growth came from 1.96 million new U.S. subscribers, well ahead of the estimated 1.48 million. Its 5.46 million new international subscribers also topped estimates of 5.02 million.
The stock jumped about 7 percent after hours, extending a rally that's pushed it up 60 percent this year as of Monday's close.
The company said in its letter to shareholders that it added subscribers despite completing price increases in the quarter. It also said that bundling Netflix with Sky and Comcast services will allow it to reach more customers and make it easier for them to sign up and pay for its service.
"These relationships allow our partners to attract more customers and to upsell existing subscribers," the company wrote. "We remain primarily a direct-to-consumer business, but we see our bundling initiative as an attractive supplemental channel."
Netflix reported earnings per share of 64 cents, matching the Thomson Reuters consensus estimate, and slightly beat on revenue of $3.7 billion, topping the $3.69 billion estimate.
The company is projecting earnings of 79 cents a share this quarter, as well as revenue of $3.9 billion. It's also projecting it will add 6.2 million subscribers, with 1.2 million coming from the U.S.
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