Netflix Inc.’s Record Quarter in 5 Graphs

Netflix‘s (NASDAQ: NFLX) first-quarter results contained plenty of good news for investors. The internet TV leader turned in surprisingly strong growth on both its top and bottom lines as it sailed past management’s big-picture forecasts.

1. Revenue growth

NFLX Operating Revenue (Quarterly YoY Growth) Chart
 
NFLX Operating Revenue (Quarterly YoY Growth) Chart

NFLX Operating Revenue (Quarterly YoY Growth) data by YCharts

The streaming giant added 7.4 million subscribers during the period to outpace management’s guidance by more than 1 million users. Those gains came even as average monthly prices rose 14% thanks to increased fees and the continued migration toward high-definition and multi-stream plans.

As a result, Netflix’s sales grew to $3.6 billion, or up 43% year over year. That’s the company’s fastest growth since it shifted into the streaming-video business. Management’s second-quarter forecast calls for another record as sales are projected to rise 44% to $3.8 billion.

2. International gains

Chart showing rising profits from international markets.
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Chart showing rising profits from international markets.

International earnings, in millions. Data source: Netflix. Chart by author. *Q2 2018 is management’s forecast. 

Back in late January, Netflix estimated that the international segment would contribute $234 million toward earnings. The actual result was $272 million. As a group, these territories have now matured enough to be solidly profitable, with recent gains easily offsetting initial losses from the early international rollout.