Netflix Quarterly Profit Misses the Mark Despite Strong Subscriber Growth

Netflix added a whopping 1.69 million net subscribers to its service in the quarter.

Jul 21, 2014 at 5:05PM

Netflix (NASDAQ:NFLX) reported fiscal 2014 second-quarter earnings this afternoon that fell short of Wall Street expectations for the period. However, investors didn't seem to care as subscriber growth surged and revenue was in line with estimates.Shares were up slightly in after-hours trading.

For the three-month period, Netflix posted a profit of $1.15, which was up from $0.49 a year ago. Nevertheless, that was a penny short of analysts' estimates for earnings per share of $1.16 in the quarter. Revenue, on the other hand, was in line with expectations at $1.34 billion.


Source: The Motley Fool.

Netflix added a whopping 1.69 million net subscribers to its service in the quarter (most outside the U.S.). The company now boasts over 50 million members across 40 countries. The streaming star ended the second quarter with 13.8 million international members, up from 7.75 million a year ago. Moreover, Netflix said it plans to begin offering its streaming services in Germany, France, Austria, Switzerland, Belgium, and Luxembourg in the third quarter. This should significantly increase the company's addressable market overseas in the quarters ahead. The company expects to add another 3.7 million worldwide subscribers in the current quarter ending in September, including 1.3 million U.S. customers.

Additionally, Netflix said its price hike in May did not affect membership growth in the quarter. Netflix original content continues to be a hit with viewers. In fact, Netflix original series were recently nominated for 31 Emmy awards, with House of Cards grabbing 13 nods. Shares of Netflix were up nearly 2% in after hours trading, as of 4:45 p.m.

-- Material from The Associated Press was used in this report.

Tamara Rutter owns shares of Apple and Netflix. The Motley Fool recommends Apple and Netflix. The Motley Fool owns shares of Apple and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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