Netflix shares popped as much as 20 percent in after-hours trading Monday, after the streamer posted better-than-expected earnings and reeled in 900,000 more international customers than previously forecast for the third quarter of 2016.
The company reported total revenue of $2.29 billion and earnings of 12 cents per share. Wall Street analysts had expected Netflix to post revenue of $2.28 billion and EPS of 6 cents.
Netflix said it added 3.57 million new streaming subscribers, including 3.2 million overseas and 370,000 in the U.S. When it released second-quarter earnings, Netflix had forecast adding 2.6 million streaming subs overall — 300,000 in the U.S. and 2.3 million internationally.
The company's global streaming revenue totaled $2.2 billion, of which 40% was generated outside the U.S. Operating income was $106 million (versus Netflix's prior $64 million estimate) while net income was $52 million (vs. forecast of $22 million).
Netflix is continuing to double down on originals. At an investor conference last month, CFO David Wells said Netflix was shifting its content spending with the aim of having 50% of the TV shows and movies on its streaming service be original productions over the next few years.
Also Monday, Netflix disclosed that — for the time being — it is no longer looking to launch its own branded service in China, citing regulatory challenges.
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