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Netflix Shares Pop on Big Subscriber Gains

January 19, 2016

Netflix Partners With SoftBank For Japan LaunchNetflix Partners With SoftBank For Japan Launch
Reed Hastings, founder and CEO of Netflix Inc.Photograph by Ken Ishii — Getty Images

Video-streaming service Netflix’s quarterly subscriber additions topped its expectations, boosted by strong international growth, sending its shares up 8 percent in extended trading.

Netflix, known for its original shows such as House of Cards and Orange is the New Black, said it added 5.59 million subscribers in the three months ended Dec. 31, higher than its forecast of 5.15 million.

Internationally, Netflix added 4.04 million subscribers, compared with its estimate of 3.50 million.

The company said on Tuesday it added 1.56 million U.S. subscribers in the fourth quarter, below the 1.65 million it forecast in October.

Shares of Netflix (NFLX) were trading up 6% after the bell at $114.39.

Netflix, which started in 1997 as a DVD-rental-by-mail firm, forecast adding about 1.75 million customers in the United States in the current quarter.

It also said it expected to add about 4.35 million subscribers internationally.

Earlier this month, the company flipped the switch on its aggressive international plans, going live in more than 130 countries at once.

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Netflix said revenue rose 22.8% to $1.82 billion.

Analysts on average had expected a profit of 2 cents per share and revenue of $1.83 billion, according to Thomson Reuters I/B/E/S.

Excluding items, Netflix earned 7 cents per share.

(This story was updated with additional information)