Netflix has released its fourth quarter earnings for the year ending 2016. The company reported a massive revenue of US$1.82-billion and earnings per share of 10 cents.
The results are not far off from what analysts had estimated for the company. Netflix beat the estimates where it matters most though: profit. While analysts were expecting the company to report a revenue of US$1.83-billion, it reported US$1.82-billion in revenue. When it came to its profits, Netflix did a lot better than the earnings per share of two cents estimated by analysts.
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The earnings sent the stock up more than eight percent in after-hours trading. This interest from investors shows the promise of Netflix, investors are seeing it as a profitable business in the future.
In the US, the company reported 1.56 million subscribers, coming short of its own projection of 1.65 million. Overall, the company reported 5.59 million members, growing its membership to 74.76 million. The company’s latest expansion into 130 new countries will certainly have an impact on the its first quarter earnings for the year 2016 and going forward. The company projects a growth of 6.10 million members in the first quarter.
The year 2016 marked important milestones for Netflix. The company produced its first TV film, Beats of No Nation, directed by Cary Joji Fukunaga and based on Uzodinma Iweala’s novel of the same title. This included shows like Marvel’s Jessica Jones and Aziz Ansari’s Master of None.
Its current show Making a Murderer is currently receiving raving reviews. Two documentaries that Netflix produced, What happened, Miss Simone? and Winter on Fire, have been nominated for the Oscar awards.
The company plans to increase its efforts for original content. In 2016, it wants to increase its release to 600 hours of original content this year, up from 450 hours in 2015.
“Beyond the sheer volume of content, the breadth of our original programming will continue to expand with current plans for new seasons of 30 or so original series, eight original feature films, 35 new seasons of original series for kids, a dozen documentaries, and nine stand up comedy specials,” the company said.