Netflix (NASDAQ: NFLX) beat expectations for the first quarter of 2018, boasting 7.4 million new subscribers.
The streaming giant reported a record number of new subscribers for the first quarter, which ended March 31.
Netflix’s strategy in releasing original content appears to be working, with 1.96 million new subscribers in the US and 5.46 million new international users.
Following the positive results, shares jumped over than six percent in after-hours trading Tuesday to $307.78 per share.
Goldman Sachs analyst Heath Terry wrote in a note earlier this month: “We continue to believe long-term subscriber growth and profitability will exceed current consensus expectations as Netflix realises the global scale benefits that come from its subscriber base, distribution network and content library.”
The group still predicts it will remain at a loss for several more years, spending huge amounts on original content. The group said it will “continue to raise debt as needed to fund our increase in original content.”
In the first quarter, Netflix released original content including “The End of the F***ing World”, “Altered Carbon” and “A Series of Unfortunate Events.”
Executives have announced that they plan to release over 700 original series and 80 films over the course of the year.
“We have big plans for content growth and you should expect that to continue,” said the Chief Executive Reed Hastings on a post-earnings webcast.
Netflix has predicted content spending of around $8 billion in 2018.
Earlier this year, the streaming giant announced Susan Rice, a former top aide to President Obama, to the group’s board of directors.
“As a global company operating in over 190 countries, Susan’s expertise in international affairs will be valuable,” said Netflix.
