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Netflix shares soared more than 24 percent in after-hours trading following a stellar earnings report that topped expectations from the popular entertainment company. Not only did the Netflix’ first-quarter revenue increase to $1.02 billion from just $870 million one year ago, but it posted a profit of $2.7 million, or 5 cents per share, compared to a loss of $4.6 million, or 8 cents per share, last year. First-quarter earnings excluding items of 31 cents a share exceeded analysts’ expectations of 19 cents a share on $1.02 billion in revenue.

Much of Netflix success can be attributed to the addition of 3 million customers—2 million in the US and 1 million internationally—bringing its total subscriber base to 36 million streaming users. Netflix said the reception of its first original series, “House of Cards,” in 2013 helped it gain new subscribers. The company also introduced an $11.99 plan in the US that allows customers to stream up to four movies at the same time.

“We’ve seen improvements in our business over the last year in content, in our product, in optimizing the way we process payments, and in the general recovery of our brand,” the company said in a letter to shareholders.

Netflix expects its earnings for the second quarter to fall somewhere between 23 cents and 48 cents per share as the company continues to outshine its competition in terms of content. Not only was Netflix able to license programming from Warner Brothers Television and Fox Television in the last quarter, but it also exceeds Amazon in popular content by 135 percent. After the success of “House of Cards,” Netflix has announced plans for six more original series.

Investor Letter Q12013 NETFLIX REAL

Samantha Lile

Samantha Lile is a 2002 Missouri State University graduate of journalism and mass media. She has served as a reporter and editor for various newspapers throughout her journalism career. She made the leap into writing full-time after working for a major financial institution since 2000.

Because of her banking background, Samantha is knowledgeable in finance reporting, but is also strong in commentaries, personal profiles, youth studies, horticulture, history and entertainment-related works.

Samantha lives in Ozark, Mo. with her husband of nine years, four dogs and two cats.

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