tflix (NFLX) reported second-quarter earnings that beat expectations on Thursday, with revenue reaching $9.56 billion—an increase of 16.8% compared to the same period last year. The company continued to focus on top-line initiatives, including cracking down on password sharing and promoting its ad-supported tier. However, despite the positive results, the stock fell as much as 6% in after-hours trading due to weak Q3 guidance.
Here are the key points:
Revenue Miss: Netflix’s Q2 revenue exceeded expectations, but its Q3 revenue guidance disappointed. Analysts were expecting $9.83 billion, but the company guided to $9.73 billion for the next quarter.
Earnings Per Share (EPS): Diluted EPS beat estimates at $4.88, surpassing consensus expectations of $4.74. For Q3, Netflix expects EPS of $5.10.
Subscriber Growth: Netflix added over 8 million subscribers in Q2, driven by popular content like the latest season of “Bridgerton.” This strong growth followed the 9.3 million net additions in Q1.
Stock Performance: Prior to the earnings release, Netflix’s stock had performed well, rising more than 30% since the start of the year.
Full-Year Outlook: The company increased its full-year 2024 revenue growth projection to 14%–15% and expects operating margins to reach 26%.
Despite the stock dip, Netflix remains a significant player in the streaming industry, with ongoing efforts to expand its content library and improve user experience.