Netflix’s (NASDAQ: NFLX) stock soared nearly 20 percent on Tuesday after the company wowed The Street after announcing in its third quarter report and letter to shareholders that it signed up more subscribers to its video streaming platform than it previously expected.
Netflix’s earnings report also marked the first time ever that its global streaming revenue came in above the $2 billion mark and represents a 36 percent year-over-year growth. Specifically, total revenue for the quarter was $2.158 billion, of which $1.304 billion was domestic and the remaining $853 million was seen in the international segment.
Looking forward to the fourth quarter, Netflix expects its revenue to continue rising. The company is guiding for its total revenue to reach $2.344 billion, of which $1.397 billion will come from the U.S. and $947 million from international markets.
At the end of the third quarter the company boasted a total of 47.50 million subscribers in the US and 39.25 million in the international segment for a total of 86.74 million subscribers globally. Netflix told investors that at the end of the fourth quarter it expects to have 48.95 million members in the U.S., 43.0 million subscribers internationally for a total of 91.94 million members globally.
However, Netflix’s subscriber outlook for the fourth quarter implies a moderate year-over-year decline in net additions and reflects the completion of the un-grandfathering, a term it coined for a gradual price hike.
Netflix is now in the fourth year of offering original content and throughout 2017 the company expects to make over 1,000 hours of original programming available to subscribers. This marks an increase from the more than 600 hours released this year.
Some of the non-original content that will make its way to Netflix’s library include “The People vs. O.J. Simpson: American Crime Story” and “Queen of the South.” North American viewers will also be able to watch “Quantico” and “American Crime.”
Netflix’s app will be available across Liberty Global’s platform in the Netherlands later on this year and will expand to other countries next year.
The company also provided an update on its ambitions in China and noted that the regulatory environment for foreign content remains challenging. Netflix hopes to license content to existing streaming providers in China rather than operate its own service in the country and revenue from this initiative is expected to be modest.