Netflix performed well again during the fourth quarter with strong growth internationally and so much so that many investors seemed to overlook its weaker growth domestically which in turn sent shares surging upwards.
The company gained 4 million new international subscribers and over 1.56 million domestic subscribers.
That is a huge jump for the international presence of the company, though once again it appeared as if the company is struggling with growth domestically. The company now has 74.75 million subscribers worldwide. Analysts were expecting the total to reach 74 million.
The company pointed out that its high penetration across the U.S. has made it harder to increase net additions than during the past.
However, it appears that its international outperformance has outweighed any concerns about the growth of subscribers as a whole.
Netflix shares shot upwards in extended trading over 12%. Reed Hastings the company s CEO said during CES 2016 that the company would launch its streaming video service in 130 new countries, representing a huge opportunity for the business given much of its growth today is taking place internationally.
Netflix said it was expecting to add over 6 million new subscribers during the first three months of 2016. If it is able to meet that target, it would be its best performing quarter for new net subscriptions in the last 12 months.
The stock increased by 9% immediately following the release of the numbers before reaching 12% during extended trading hours. Last quarter, the stock tanked by 10% after its earnings report was announced for the third quarter.
Netflix has been having an up and down month, as its share price had dropped over the last 30 days, but thus far, it looks as if it has turned for the better.
In the last earnings report for Netflix, the company reported new subscribers of 3.62 million of which 2.74 million were international.