Netflix’s First-Quarter Results Satisfy Investors

By Cameron Scott 

netflix, social media, social networks, regulation, SECNetflix today reported a profit of $3 million for the first quarter of 2013, with total revenue of $1.02 billion. Revenue was up 20 percent over the same quarter of last year, when the company saw a net loss of $5 million.

Netflix’s adjusted earnings per share for the first quarter of this year were $0.31. Its share price was up 6.73 percent in after-hours trading.

The company pointed to the success of its original series, House of Cards.

“[T]he strong viewing across all our markets gives us faith in our ability to create global content brands in a cost-effective, efficient way,” CEO Reed Hastings and CFO David Wells wrote in their letter to investors [pdf].

The service’s second major original offering, Hemlock Grove, went live this week. Although Netflix says it was was “viewed by more members in its first weekend than was House of Cards,” critical reception has been much cooler.

The company also announced two new subscription offerings. It will begin offering a family streaming plan for U.S. viewers, that allows unlimited streaming and up to four simultaneous sessions for $11.99 a month. Netflix also said it plans to expand into “an additional European market” in the second half of this year although it continues to lose money on its video-streaming service for international viewers.

In the quarter, Netflix added 3 million streaming members, taking its total to 36 million, and delivered 4 billion hours of video content.