Netflix Posts Strong Subscriber Gains

More than half of Netflix’s subscriber base is now outside of the U.S., the company reported in releasing its Q2 financials, announcing worldwide net additions of 5.2 million in the quarter, ahead of the 3.2 million initially forecast.

Revenues were up 32.3 percent to $2.8 billion, delivering a net profit of $66 million. Total streaming memberships at the end of the quarter hit 104 million, of which 51.9 million are in the U.S. and 52.03 million are international. The international segment delivered revenues of $1.2 billion and a loss of $13 million.

“In Q2, we underestimated the popularity of our strong slate of content which led to higher-than-expected acquisition across all major territories,” the company said in its letter to shareholders.

Domestic net additions were 1.1 million, with 750,000 additions forecast for Q3. International net additions were 4.1 million, with 3.65 million forecast for Q3. “We are making good progress with our international expansion as improving profitability in our earlier international markets helps fund significant investment in our newer territories. As a result, we expect positive international contribution profit for the full year 2017, at current F/X exchange rates. This would mark the first-ever annual contribution profit from our international segment.”