But Netflix missed its target badly in the April-June period, causing its high-flying stock to plummet by about 14 percent to $345.63 in extended trading. CNBC explains that "domestic additions were only a little more than half of its projections, while it just added 4.5 million subscribers internationally". Far from it, revenue for the quarter checked in at $3.1 billion, a modest 10% increase from the same quarter a year-ago.
With all this, the stock is tanking.
Netflix reported lower than expected subscriber growth for the first time in five quarters.
GBH Insights analyst Daniel Ives called the second-quarter showing "a near-term gut punch" to Netflix.
Netflix said in a letter to shareholders that it had overestimated the rate of new shows being added to the platform over the quarter, but remained confident that this would not affect its long-term growth.
For the three months ending on June 30, Netflix reported revenue of $3.9 billion and earnings of 85 cents a share - touching analyst estimates of $3.94 billion in revenue and beating projections of $0.79 per share.
Still, Netflix ended Q2 with 130.1 million global subs, up 25% year over year, with 56 million in the US and 72.8 million elsewhere. Analysts polled by FactSet expected Netflix to add 6.2 million subscribers total, with 1.2m coming from the USA and 5.01 internationally.
Despite the subscriber miss, Netflix CEO Reed Hastings said the company's fundamentals have never been stronger.
"I think Netflix is approaching a ceiling of subscriber growth, especially here in the U.S. They're going to have to do something bold and different". Revenue climbed 6 percent to $3.9 billion.
Netflix is still expecting a big second half of 2018 with many new hit shows still to come and several big deals.
The Silicon Valley-based company noted that it is beginning to "lead artistically" in some categories with its original content, earning enough Emmy nominations this year to break a 17-year top-spot streak by HBO.
He added the expectation that despite the weaker-than-expected results, the company was expected to continue to be the leading video streaming service across the US.
Netflix said Monday that it expects more competition, but dismissed any potential negative impact on its business.
"Our strategy is to simply keep improving", the company stated.