The streaming service had a red-hot second quarter, exceeding Wall Street’s wildest expectations by adding 5.2 million new subscribers — 2 million more than expected.
In a letter to investors, Netflix chocked its growth spurt up to its “amazing content” and said it now has 104 million subscribers, easily crossing the 100 million milestone.
Because the company does not run advertisements to generate revenue, subscriber growth is an important indicator of how Netflix is doing.
Netflix has been taking the few bucks you pony up every month for a subscription and investing heavily in original content this year — to the tune of $6 billion.
The banner quarter was carried by a strong slate of original new releases, including blockbuster hits such as “House of Cards” and “Orange Is the New Black.”
The streaming service is locked in a battle with Amazon to attract subscribers to its premium online content, and it appears the investment is paying off.
Shares of Netflix jumped more than 8 percent after the closing bell, with share prices hovering around $161.70 as of Monday afternoon.
The company reported an $2.785 billion in revenue, in line with its guidance for the second quarter.
While the second quarter was bright, Netflix could be challenged in the third quarter, because no big releases are on the schedule. However, the company remained optimistic they it would continue its momentum, forecasting revenue of $2.969 billion and a net addition of 4.4 million new subscribers.
In the fourth quarter, Netflix offers fans plenty to look forward to, including a new season of “Stranger Things” and Marvel’s “The Punisher.”