Netflix reported better-than-expected results for the fourth quarter, led by strong subscriber growth outside the US.
Netflix added 7.05 million new streaming customers in the fourth quarter and ended 2016 with 93.8 million subscribers worldwide.
As a result, Netflix stock jumped more than 8% in after-hours trading today, following the earnings release.
Netflix earned 15 cents a share, up 50% year over year, on revenue of $2.48 billion, up 36%, in the December quarter, which exceeded analysts’ projections.
Netflix added 1.93 million new US streaming video subscribers and 5.12 million new international subscribers in Q4. The number also exceeded Netflix’s forecast.
The company now has a total of 49.43 million US subscribers, while internationally the total has now reached 44.37 million.
Netflix expects to add 5.2 million net new subscribers in Q1 for a worldwide total of 99 million. The streaming company is targeting 1.5 million net new US streaming subscribers and 3.7 million new international subscribers in Q1 2017.
Netflix forecast Q1 earnings per share of 37 cents, up 517% year over year. Wall Street was modeling Netflix to earn 18 cents a share in Q1 on sales of almost $2.60 billion, up 33%. Netflix did not give a total revenue target.
Netflix also said it plans to increase its spending on original productions further in 2017, to USD 6 billion from USD 5 billion last year.