Netflix has a very, very lofty valuation — CEO Reed Hastings himself has suggested that it’s too high — so it can’t stumble when it comes to earnings. But the streaming video company appears to have done just fine today: It reported Q2 profits of $1.15 per share and revenue of $1.34 billion. Most crucially, the company now has more than 50 million streaming subscribers worldwide.
The market was looking for $1.14 per share on revenue of $1.34 billion, 36.2 million U.S. subscribers and 13.7 million international subs. Investors, who have already placed a sky-high valuation on the stock, seemed okay with the results at first blush.
Here’s RBC analyst Mark Mahaney’s “cheat sheet” so you can gauge for yourself:
As always, CEO Reed Hastings’ quarterly letter to shareholders is filled with interesting nuggets. I’ll be highlighting some of them as I find them here: