Netflix blew past its subscriber increase forecast during the quarter ending in September, which helped to reassure investors who had become skittish over the growth trajectory of the streaming video giants. The news sent shares of the company surging up by over 20% in trading after hours on Monday.
The performance that was much better than had been expected came for the most part in international locations where the video streaming company completed its massive, nearly global expansion in 2016.
Netflix has made a huge bet that the same mix of original, edged content and its library programming that has taken the media world in the U.S. by storm will do the same overseas.
Netflix added over 3.2 million new international subscribers for the three-month period, compared to a 2 million guidance.
Across the U.S., Netflix was able to add 370,000 new subscribers for the same period. That is 20% ahead of the forecast it had for 300,000. However, far below the same quarter last year of 880,000 new additions, which reflects how the streaming market in the U.S. has matured due to more competition from Amazon, Hulu as well as others.
Reaction on Wall Street shows the company’s rollout across the globe all at once has created a foggy outlook for business for both itself and its investors and has led to a volatile game of expectation.
The quarter’s performance ended higher than the same quarter one year ago where 2.74 million new subscribers were added outside the U.S., but in that one year time the company has launched in over 130 different countries, which helped to elevate its growth potential quite substantially.
For the previous quarter, when Netflix did not meet its estimates for growth in subscribers, CEO Reed Hastings apologized during an investors call for the highly volatile stock, which at that time dropped by 13%.
On Monday, shares of Netflix soared, and Hastings smiled. Shares surged close to 20% in trading after hours.
Prior to that, the stock had dropped 13% during 2016 as the video streaming giant struggled to maintain the growth expectations of investors.
Despite the beat by subscribers for the quarter, many analysts believe the international market is not what many say it is, due to an uneven nature of internet services and the regulatory environment across the globe.