International shines for Netflix as it racks up 57.4MN subs in Q4
DetailsMichelle Clancy | 21 January 2015
Netflix added 1.90 million net subscribers in the US for the fourth quarter of 2014, edging its guidance of 1.85 million adds (and the consensus view of 1.83 million). Further, in its international expansion markets, net subs came in at a healthy 2.43 million, beating by far the 2.15 million expected.
The 1.90 million domestic adds is actually down from 2013 (it logged 2.3 million for Q4 2013). But overall in 2014, the company added 13 million new members, compared to 11.1 million in 2013, bringing the global total to 57.4 million members.
The company also said that it will increase the percentage of original content spending over the next few years as new series continue to score highly — and plans to do so with long-term debt.
Net income would have been $45 million, compared to a forecast of $27 million, due to lower than expected international losses and ax benefits related to the reinstatement of the 2014 R&D tax credit. It finished the quarter with $1.6 billion in cash and equivalents.
For the first quarter of 2015, Netflix expects to add 1.80 million subs in the US and 2.25 million globally. And, because of its international expansion plans for 2015, the company said that it expects full year operating income for 2015 to be lower than full year 2014.
Investors rewarded the streaming video giant on the news, with NFLX up an impressive 11.2% in after-hours trading.