LONDON, UK / ACCESSWIRE / July 19, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Netflix, Inc. (NASDAQ: NFLX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NFLX, following the Company's reporting of its second quarter fiscal 2017 earnings results on July 17, 2017. The internet streaming giant posted record second quarter subscriber addition. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Earnings Reviewed

For the quarter ended June 30, 2017, Netflix generated revenue of $2.79 billion, up compared to revenue of $2.11 billion in Q2 2016. The Company's revenue numbers exceeded analysts' estimate of $2.76 billion. Netflix's global streaming revenue was within 1% of its projection.

Netflix's streaming membership grew to 104 million from 99 million in the previous quarter, ahead of the Company's expectations. Netflix also crossed the symbolic milestones of 100 million members, with more international than domestic members.

Netflix reported operating income of $127.81 million in Q2 2017 compared to $70.37 million in Q2 2016. The Company's operating margin dipped 516 basis points sequentially due to the timing of content releases. Through H1 2017, Netflix's operating margin was 7.1%, putting it on track for its full year target of 7%

For Q2 2017, Netflix reported net income of $65.60 million, or $0.15 per share, compared with $40.76 million, or $0.09 per share, in Q2 2016. The Company's earnings per share came in below Wall Street's expectations of $0.16 per share.

Key Metrics

During Q2 2017, Netflix's global net adds totaled a Q2-record of 5.2 million compared to the forecast of 3.2 million and increased 5% sequentially, bucking historical seasonal patterns. For H1 2017, Netflix's net adds advanced 21% on a y-o-y basis to 10.2 million.

In the reported quarter, Netflix's domestic net additions of 1.1 million, represented the highest level of second quarter net adds since Q2 2011. For Q3 2017, the Company is projecting to add 0.75 million US members compared with 0.37 million in Q3 2016. The Company's international segment now accounts for 50.1% of its total membership base.

Netflix's international revenue totaled $1.17 billion, up 57% on a y-o-y basis, excluding a negative $23 million impact from foreign exchange, while international ASP grew 10% y-o-y on an F/X neutral basis. The Company's international contribution profit was negative $13.10 million compared to negative $69.18 million in the prior year's same quarter and was better than the Company's forecast of negative $28 million, primarily due to higher-than-forecasted paid members.

Netflix is forecasting Q3 FY17 international net adds of 3.65 million. The Company expects positive international contribution profit for the full year 2017, at current F/X exchange rates. This would mark the first ever annual contribution profit from Netflix's international segment.

Free Cash flow and Capital Structure

During Q2 2017, Netflix's free cash was negative $608 million compared to negative $254 million in Q2 2016 and negative $423 million in Q1 2017. The Company's is expecting free cash flow in the range of negative $2.0 billion to $2.5 billion for FY17. The Company believes that it is wiser to continue to invest, with its content strategy paying off and resulting in strong member, revenue, and profit growth. Netflix stated it will deploy increased capital in content, particularly in owned originals, and expects free cash flow to be negative for many years.

In May 2017, Netflix completed a 1.3 billion euro bond offering. The Company stated that it is pleased to have broadened its access to capital markets beyond the US high yield market.

Stock Performance

At the closing bell, on Tuesday, July 18, 2017, Netflix's stock surged 13.54%, ending the trading session at $183.60. A total volume of 40.77 million shares has exchanged hands, which was higher than the 3-month average volume of 6.60 million shares. The Company's stock price skyrocketed 28.07% in the last three months, 38.16% in the past six months, and 85.81% in the previous twelve months. Moreover, the stock soared 48.30% since the start of the year. The stock is trading at a PE ratio of 240.94 and currently, has a market cap of $77.70 billion.

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