Was Netflix’s Subscriber Growth a Real Beat?

After missing earnings expectations in Q2 2016, Netflix guided to 2 million in international streaming subscriptions for Q3 2016, below street estimates. This created a ripple effect of many analysts revising down their estimates for Q3 2016 after earnings.

Surprisingly, actual international subscription growth in Q3 2016 was 3 million compared to the guidance of 2 million. Is this a real beat? Does this warrant rewarding management for surpassing expectations?

NFLX International Subscriber Growth Updated x

For illustrative purposes only.

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