On Tuesday, Netflix reported its quarterly earnings for Q3 2018 and revealed that it gained 7 million subscribers during the quarter.
The results, which beat analysts expectations by about 2 million, sent the company’s stock soaring about 15 percent during after-hours trading. Netflix now has a total of 137 million subscribers, which has grown over the past several years due to rapid growth overseas. Of the 7 million subscribers that were added in the past quarter, 1.96 million were domestic users and 5.87 million were international users.
Netflix also reported revenue for Q3 of $4 billion, which is up 36 percent year-over-year, and earnings of 89 cents per share that beat analyst expectations of 68 cents per share.
The company’s stock closed up 4% for the day, to $346.40 per share. Netflix is planning to spend a total of $13 billion on content in 2018 and they continue to operate at negative free cash flow. In a letter to shareholders, Netflix said:
“We recognize we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past,” Netflix said in its letter to shareholders. “These investments we see as very likely to help us to keep our revenue and operating profits growing for a very long time ahead.”
Netflix is forecasting paid net additions of 7.6 million for Q4 and total net additions of 9.4 million.