Netflix surges to record high as company adds non-US subscribers

There are now more people streaming Netflix outside the US than domestically.

Netflix posted its quarterly financial results (PDF) yesterday, and it is just about dominating Wall Street expectations.

The streaming media company's stock jumped 10 percent after it revealed that it added 5.2 million memberships, far above the expectation that it would add 3.23 million during the quarter.

The company's profits aren't huge: Netflix earned just $66 million on revenue of $2.79 billion during the quarter. But investors have shown that they're willing to forego massive profits now in exchange for breakneck growth.

Netflix stock pushed to $178.55 in after-hours trading, beating the company's previous all-time high of $166.87, set last month.

There are now more Netflix subscribers outside the US (52.03 million) than within the US (51.92 million). The company also passed the symbolic goal of having 100 million paying subscribers.

The company's letter to shareholders also touts its content successes, boasting of its 91 Emmy nominations and successful new series like Stranger Things and 13 Reasons Why.
Together with its global expansion, Netflix is also increasingly producing non-English content like Ingobernable, a Spanish-language series which has been viewed by millions outside of Mexico, the country where it is set.

However, Netflix is also becoming more disciplined about its content. Netflix has renewed 93 percent of its original series so far, much higher than traditional TV networks, reports The Associated Press. But it's shown a willingness to drop TV shows that don't keep up with its expectations. In the second quarter, Netflix declined to renew both its sci-fi show Sense 8 and music drama The Get Down.

The company continues to borrow to produce more content. Netflix is currently spending $6 billion a year on content, and it told investors yesterday that those massive content purchases will produce negative cash flow "for many years."