Netflix posted earnings that edged past Wall Street expectations Monday, while revenue was largely in line. In addition, the company said it will increase membership costs for new subscribers starting later in the quarter.
Shares rallied in extended-hours trading.
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The movie-streaming company posted earnings of 86 cents a share on sales of $1.27 billion. Analysts had expected the company to report earnings excluding items of 83 cents a share on $1.27 billion in revenue, according to a consensus estimate from Thomson Reuters.
In addition, the company said it expects to post current-quarter revenue of $1.14 billion, versus estimates for $1.31 billion.
The company also announced that it will increase membership prices for new subscribers by $1 to $2, depending on the country, later this quarter. Current Netflix members would stay at the current pricing for "a generous time period."
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"These changes will enable us to acquire more content and deliver an even better streaming experience," the company said in its letter to shareholders.
The company announced a total number of 48.4 million subscribers in the first quarter. Netflix has remained the top streaming business despite increase competition from YouTube and Hulu.
This article originally appeared in CNBC.
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