Netflix soars past growth targets with over 5 million new subscribers, and the stock just hit an all-time high

pulse

July 17, 2017 8:57 PM

After missing its subscriber growth targets last quarter, Netflix said it was expecting a big Q2. Netflix reports its Q2 earnings Monday.

After missing subscriber growth targets last quarter, Netflix soared past them in Q2, both on the domestic and international fronts.

Netflix added a whopping 5.2 million total subscribers, versus the company forecast of 3.2 million. Netflix's Q2 revenue and EPS were roughly in line with what Wall Street was expecting.

Netflix rose 8% in the immediate aftermath of its earnings report, hitting an all-time high in after-hours trading.

What caused Netflix's growth to surge?

"In Q2, we underestimated the popularity of our strong slate of content which led to higher-than-expected acquisition across all major territories," Netflix wrote in its earnings letter.

And the party will keep going in Q3, according to Netflix.

Netflix said that is "assumes much of this momentum" in subscriber growth will continue going forward, which is great news for investors, as some on Wall Street were bracing for weak guidance. Q3 will also have a favorable comparison to last year for Netflix, when Q3 saw Netflix's price increase — dubbed "un-grandfathering" — hurt its subscriber growth.

Here are the key numbers:

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