Netflix Inc. is the giant in providing online video content services. The company has been the only dominant force and no other company can match its offerings. It enjoys the most users, as well as it has expanded its global footprints to more than 50 countries throughout the world. As highlighted by some reports, it is believed that the online movies and TV shows service provider has hit another milestone by exceeded the 60 million global users’ mark, which is an exceptional achievement. Overall, the business is performing strong in the market and the efforts can easily be seen from its performance.
Apart from surpassing the memberships of 60 million users worldwide, the company is showing strong growth potentials, as the revenues of the company increased by 24%. The shareholders of Netflix Inc are happy with the ‘numbers’ that streaming service is generating whether if it is regarding user database or revenues and financial performances. The company easily posted a 24% increase in its revenues in this quarter. For companies, as big as the size of Netflix Inc, this is not considered as a big achievement, but the online streaming giant ‘merely met’ the lofty expectations set by the Wall Street.
These numbers are better than those expected from Netflix Inc Inc by analysts in this quarter, in terms of performance. Wall Street Journal reports that the company added more than 4.88 million subscribers to its list in the March quarter. However, it had to sacrifice its profits in order to focus on its international expansions recently. The investors care about the “62 million subscribers’” number, as it is beneficial for both parties over the long term.
Netflix stocks were increased by 11% bringing the share price to $528.85 after trading hours. Moreover, the stock of the company was already up since January by more than 47%. It could only manage to perform better in terms of gaining users, as well as increase in revenues. It posted a drop in earnings per share by 31 cents.
Wall Street Journal reports, “Overall, Netflix Inc reported a first-quarter profit of $23.7 million, or 38 cents a share, down from $53.1 million, or 86 cents, a year earlier. Excluding certain items, such as the foreign-exchange loss, profit was 77 cents a share.”
The organization has been the pioneer in offering online video content services. It can be said that due to aggressive international expansion in many regions lately, it sacrificed its profits, and seeks to recover in the near future.