Less than a week after becoming the first Internet streaming service to score Emmy nominations in major categories, Netflix’s 2013 second-quarter earnings-per-share beat analysts expectations, earning 49 cents on $1.07 billion in revenue. Analysts had estimated that Netflix’s earnings-per-share would be closer to 40 cents on $1.07 billion. Even with all of that good news, however, Netflix’s share price still dropped 5.48% in after-hours trading.
Still, those numbers show strong growth for the company, which last year at this time reported 11 cents per share on $889 million in earnings. Netflix also added 630,000 US subscribers to its streaming pool in the second quarter, bringing its total subscriber base to 29.81 million,
In a letter to shareholders on Monday, Netflix CEO Reed Hastings said that the resurrection of “Arrested Development” resulted in a “a small but noticeable bump in membership” while other well-received original series didn’t have a noticeable effect in their first season because they are less established. Still, Hastings wrote, Netflix has ordered second seasons of all of its first-season original shows, and would “be delighted to produce a fifth season of “Arrested Development,” if possible, given fan reaction.”
Hastings also said Netflix intends to expand into original documentaries and comedy specials, due to becoming something of a destination for that kind of programming.
Hastings deviated from the typical staid conference call for stock analysts Monday to join Netflix CFO David Wells and chief content officer Ted Sarandos in conducting a Google Hangout with CNBC media, and entertainment reporter Julia Boorstin and BTIG Research stock analyst Rich Greenfield. See above to view the TV news interview-style conversation.
Brief Take: Netflix’s heavy investment in original programming, which is keeping Netflix almost constantly in the news, also seems to be paying off for the company, with earnings-per-share, total revenues and subscribers all up in the second quarter.
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