Adjusted net income jumped to $384 million or $0.85 per share from $66 million or $0.15 per share in the second quarter of 2017, and exceeded Wall Street Expectations.
Total revenues gained 40% annually to $3.91 billion, and total paid memberships advanced 26% to 124.35 million. International net subscriber additions rose 8% to 4.47 million, while domestic additions dropped 59% to 0.67 million.
Infographic: The rise of Netflix
Continuing the recent trend, Netflix reported negative cash flow of $559 million during the second quarter, which marked an improvement from the negative cash flow of $608 million recorded a year earlier. Cash flow has been under pressure from the company’s massive spending on new content.
After investing several billions of dollars in content acquisition, the company is enjoying a robust customer base that spreads across all regions. So far, the market has been bullish about the rapid subscription growth, which almost eclipsed the concerns about Netflix’s mounting debt.
Netflix continues to expand in the overseas market, building on original content and regional partnerships. In the last quarter, more than 90% of the subscriber additions came from the international market.
RELATED: Headwinds to Netflix’s growth
Earlier today, Buckingham Research Group downgraded Netflix’s stock to underperform from neutral in an unexpected move, cautioning investors that the company would face stiff competition in the overseas market.
RELATED: Netflix Q2 2018 earnings call transcript
Netflix shares hit an all-time high earlier this month after setting new records consistently over the years. The stock closed Monday’s regular session up 1.18%, but lost more than 13% during the extended session following the earnings report.