Netflix shares were up more than 2 percent in after-hours trading as the streaming giant beat expectations for both revenue and subscriber growth.
Netflix posted $2.99 billion in revenue for Q3, which slightly beat expectations, and earnings per share of $0.29, which was just below the $0.32 EPS expected.
The company added 850,000 new subscribers in the U.S. and 4.45 million internationally, which crushed expectations of 784,000 and 3.62 million, respectively.
“We are growing nicely across the world and are on track to exceed $11 billion in revenue in 2017,” Netflix said in its earnings release. “Internet entertainment is delighting consumers, and we are staying at the forefront of this once-in-a-generation opportunity.”
The 5.3 million in net subscriber additions marks the strongest Q3 subscriber growth in Netflix history; it’s also up from 3.6 million additions in the year-ago quarter. The company now has 109 million subscribers, with just over half coming from outside the U.S.
Netflix continues to spend big on original content, with costs expected to reach $7-to-8 billion next year, the company noted in its earnings release today. Netflix, which just announced price increases, is battling competitors like Amazon, Apple, Hulu, and others in the streaming space.
“It’s an exciting period and both media and technology companies see the same big opportunity as we do,” Netflix noted in its release. “We have a good head start but our job is to improve Netflix as rapidly as possible to please our members by earning their viewing time and to stay ahead of the competition in the decades to come.”
Netflix expects to add another 6.3 million subscribers in the fourth quarter.
Shares eclipsed $200 for the first time last week and are now at $206 per share in after-hours trading.