Netflix Inc. (NFLX) reported on Monday that it added 7.4 million subscribers in the first quarter, representing a surge of 50 percent from the comparable quarter last year. The subscriber growth also surpassed Wall Street’s predictions. The company now has 125 million subscribers.
The California-based company also revealed its financial results for the quarter ended March 31. It posted earnings of $290.1 million, or 64 cents a share, significantly higher than 40 cents a share, in the same period last year. Revenue for the quarter climbed 40 percent to $3.7 billion.
Netflix shares jumped more than 5 percent in the after-hours trading session on Monday following better-than-expected earnings and revenue and strong subscriber growth.
Speaking to analysts during a conference call on Monday, the company’s CFO David Wells said the business has grown faster than Netflix anticipated.
Netflix’s most of the growth came from international markets, as it added about 5.5 million of the subscribers outside the United States.
The company released 14 new original movies, 18 original series besides 11 new seasons for the previous series in the first quarter.
Netflix plans to show 700 programs in the current fiscal year. It intends to spend up to $8 billion on movies and shows in 2018, as compared to $6 billion last year. It has also dedicated $17.9 billion to streaming content agreements, higher from $15.3 billion one year ago.
To deal with rising costs, Netflix lifted prices by 10 percent to $10.99 a month for its standard service earlier in 2017. However, the price hike didn’t affect its subscriber growth at all. The company expects to add 6.2 million more subscribers in the next quarter, higher than what analysts have projected for the same period.