The ups and downs of corporate earnings have always been one of the biggest share price driving factors. Netflix has revealed its attention grabbing earning report. Soon after the official disclosure, its shares shoot up.
According to the letter written by CEO Reed Hastings and CFO David Wells and distributed among the shareholders, the achievements made by Netflix this year have been really overwhelming. To be very precise, the company has reported an earning above expectation. It goes without saying, the news was highly inspiring for the investors waiting to see their investment grow along with the company’s progress.
Netflix shares shoot up more than 16 percent, reflecting the high spirit of the investors and positive market sentiment. Netflix Inc. is an American company that is known for their internet streaming media service. The company offers subscription services to its customers for watching movies and TV episodes on their mobile. Their mobile application and video streaming service has always been an incomparable experience to the customers. Customers take their monthly membership plan and have an immediate access to unlimited numbers of TV episodes and movies on their phone in return.
With their invincible service, Netflix has been able to convince the consumers from the international market. According to the sources, the company has reported 1.7 million subscriptions from Canada, Latin America and Other countries. It’s been really a good year for the corporation as its rate of growth was consistent, or even better in the fourth quarter of 2013. The investors have many reasons to rejoice the moment. The company has been able to attract more than 2.3 million new subscriptions from the American households only. The detailed earning report goes like this – the revenues of the company were $1.2 billion in the quarter, which were $1.1 billion in the previous quarter to be exact. Similarly, the net income of Netflix was $48 million, which basically went up from $32 million.
The company top management expects to see more room for growth in the future. The company CEO and CFO have revealed their plan for European expansion sometime later this year. The company has been working on new pricing strategy as well. The company executives have also updated their shareholders about their experiments with the tiered pricing. They have confirmed that the company is in no mood for increasing their price structure for streaming service in the near future. In case the company revises its price, its consumers already having their subscription plan won’t see any price difference.