Earnings for the second quarter rose Netflix as streaming video site's largest Internet has continued to gain subscribers with the original last week reeled in content strategy Emmy nominations.
But shares fell 6.3 percent to $ 245.35 after hours, their increased almost six times more income had more to do with curbing costs soar subscriber growth expectations.
The stock has been a favorite of the market this year, rising more than any other in the S & P 500, which makes it ripe for a pull back.
"The world is moving linear TV Internet TV and Netflix isa leader in this evolution," CEO Reed Hastings said in a letter to shareholders, which was also signed by the chief financial officer David Wells.
The letter stated that "Arrested Development" has been a "small but significant bump in the composition." Netflix also said it is expanding beyond its first documentary series very attractive and strategy of stand-up comedy.
Netflix added 630,000 new customers transmission in the United States in the second quarter, for a total of 29.81 million. In April, predicted from 29400000-30050000. While within expectations, observers were excited for a while after the hype around recent original series. In the three previous periods, subscriber additions in the United States has never fallen below one million, and two districts, which exceeded 2 million.
Netflix launched its first "House of Cards" high profile of the original series in the first quarter. He has received critical acclaim and widespread popular and the company attributes the series to jump in subscriptions earlier this year. Subsequently, two other original Netflix has launched in the second quarter: "Arrested Development" and "Hemlock Grove". Although there was a clear home run in the line of "House of Cards", Netflix has ordered a second season of "Hemlock Grove" and said he was very pleased with the response of "Arrested Development".
On Monday, the company has continued to say he would be happy to order a fifth season of "Arrested Development", which was very difficult to do for the fourth season resumes on the platform.
Last week, the original Netflix gained further credibility "House of Cards" collecting three Emmy nominations in the major categories, including drama series, and the rebirth of the house streaming site "Arrested Development" to receive. It was the first time programming, the first in a tent purely digital platform won Emmy nominations. Including low profile categories, the online streaming site had 14 nominations spread over three of his originals.
The Emmy nominations guarantee the quality of the original Netflix and strengthen its position in the reserves renowned talent to participate in future initiatives. But economic momentum is Emmys shade, maybe, especially for a platform and distribution model - all the episodes at once - as unusual as Netflix.
While Netflix isthe top of the stack of the flows, the battery is larger competitors. The company has been in an arms race content license with Amazon lately, and Amazon is debuting their own originals.
In his letter, Hastings said that if the Netflix content, technological capacity and user experience are all better, "competing for the attention of consumers while also improving and the U.S. venture market saturation grow what we do. "
For the future, it is expected a higher subscriber growth in the current period. Should 30500000 to 31300000 in the third quarter.
Hastings said Netflix isscheduled to arrive 60-90000000 U.S. customers, breaking the likes of HBO several times. The company has passed the basic domestic subscribers HBO for the first time earlier this year, according to SNL Kagan estimates.
Overall, Netflix posted a profit of $ 29.5 million, or 49 cents per share, compared to $ 6.2 million, or 11 cents per share, a year earlier. Revenue rose 20 percent to $ 1.07 billion.
The result of 49 cents per share was better than Wall Street analysts expected everywhere, while the figure was in line with expectations.
There were a total of 7.75 million subscribers in its international business, to 610,000 in the previous quarter. Prediction of April, which was 7.3 to 7900000.
The DVD mail business continued to atrophy as original content and - more broadly - flows take the front seat of the Netflix strategy.
Online Streaming has become a focus to Netflix, a video sequence post-benefit supplant traditional conference call with analysts. Netflix once held a live chat hosted by the analyst Rich Greenfield of BTIG Research and hostess Julia Boorstin of CNBC, launching Hastings questions collected from Twitter and email communications. Begin streaming website Netflix investor relations to 15:00 PT.
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