Netflix says Q3 guidance assumes 'much of momentum will continue'
In its Q2 investor letter, Netflix stated: "Q3 guidance assumes much of this momentum will continue but we are cognizant of the lessons of prior quarters when we over-forecasted and there was lumpiness in net adds, likely due to demand being pulled forward (into Q2 in this case). Domestic net additions of 1.1M represented the highest level of Q2 net adds since the second quarter of 2011. For Q3'17, we project that we will add 0.75M US members, compared with 0.37M in Q3'16, which was impacted by un-grandfathering...We're forecasting Q3'17 international net adds of 3.65M. We are making good progress with our international expansion as improving profitability in our earlier international markets helps fund significant investment in our newer territories. As a result, we expect positive international contribution profit for the full year 2017, at current F/X exchange rates. This would mark the first ever annual contribution profit from our international segment."