Netflix, Inc. (NASDAQ:NFLX) had a strong third quarter in its fiscal 2017.
The online streaming site has been ramping up efforts by adding more original content, ranging from movies, TV shows, documentaries and animated series. The move has paid off as the company’s most recent fiscal period yielded great results.
Netflix earned 37 cents per share over the three months, which topped Wall Street’s expectations of 37 cents per share, according to a Thomson Reuters consensus estimate.
Revenue was also a strong point for the company, coming in at $2.98 billion, edging ahead of the analyst projection of $2.97 billion, according to a survey conducted by Thomson Reuters.
Perhaps the most impressive element of the company’s quarter was its subscription base, which increased by 5.3 million members, topping the Street Account outlook of a 4.5-million increase in subscribers.
Netflix will also hike up investments as its content budget is now between $7 billion and $8 billion for the next year, which is higher than the $7 billion that chief operating officer Ted Sarandos unveiled to Variety.
The company also updated its fourth-quarter guidance to revenue of $3.27 billion, compared to the Thomson Reuters estimate of $3.15 million. Earnings are slated to be 41 cents per share versus the 33 cents per share guidance, per Thomson Reuters.
Netflix predicts it will add 6.3 million subscribers versus the 6.25 million expected by FactSet.
NFLX stock gained 1.6% during regular trading hours and an additional 1.7% after the bell.