Netflix share value soars on strong subscriber growthBy Shawn Knight
Netflix's share value is soaring in after hours trading following a favorable close to 2014 that saw both its subscriber rate and earnings exceed Wall Street expectations.
During the final three months of 2014, Netflix reported revenues of $1.48 billion. Profit checked in at $83.4 million, or $1.35 per share ($0.72 if you exclude a $0.63 benefit from a tax accrual), crushing estimates of just $0.45 per share. During the same period a year ago, Netflix earned just $43 million in profit, or $0.79 per share.
On the full year, Netflix posted revenues of $5.5 billion.
Netflix added 1.9 million subscribers domestically during the fourth quarter and 2.43 million overseas for a total of 4.33 million for the three-month period. Wall Street expected gains of 1.83 million subscribers in the US and 2.17 million internationally, or a total of 4 million globally.
The company finished the year with 39.11 million subscribers in the US and 18.28 million collective subscribers in its international markets for a year-end total of 57.39 million globally. The performance represents Netflix's biggest quarter of subscriber gains ever and is the primary reason why investors are currently showing the company so much love.
Netflix expects to add another 4 million subscribers during the first quarter of 2015.
In a bit of related news, Netflix also revealed that it'll begin streaming the controversial Sony film The Interview starting January 24 at no extra cost to subscribers in Canada and the US. Sony revealed earlier today that the flick has racked up over $40 million in sales.