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The electricity giant is betting on advertising and ending password sharing. Subscriber growth again beat expectations last quarter.
Netflix reported its second-quarter results after Wall Street closed on Thursday.
The company added 8.05 million new users during the quarter.
The number of new users has long been the most important indicator for the market to evaluate companies. According to analyst estimates obtained by Bloomberg, the number is expected to increase by 4.87 million in advance.
The stock fell slightly in after-hours trading on Wall Street on the 23rd, having initially fallen 6%.
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I Netflix also exceeded expectations in the first quarter So far, there are 9.33 million new subscribers.
The company currently has a total of 277.65 million paying users.
Continued growth
Netflix posted revenue of $9.56 billion in the second quarter. This was slightly higher than analysts’ expectations of $9.54 billion in revenue.
An increase of 16.8% over the same period last year.
The result was $4.88 per share. This was also better than the consensus estimate of $4.74. Overall, Netflix posted a profit of $2.33 billion for the quarter.
Netflix was expected to report second-quarter revenue of $9.49 billion and earnings of $4.68 per share when it last released data.
In addition to the second quarter numbers, Netflix also gave its own expectations for the third quarter. The company expects revenue of $9.73 billion. It is weaker than analysts expected, but on the other hand, the guidance of $5.10 per share is stronger than expected.
Ads and password sharing
Netflix has recently taken several initiatives to help bolster its bottom line.
On the one hand, they are launching cheaper subscription services that include ads. At the same time, they are trying to enforce password sharing and force customers who do so to create their own accounts.
“We are making steady progress in scaling our advertising business,” Netflix wrote in its second-quarter report.
According to the company, the number of subscribers exposed to ads increased 34% last quarter.
The Bridgerton series was the biggest launch of the second quarter in terms of content. In addition, it was announced that Netflix will broadcast American football (NFL) games during the Christmas season for the next three years.
Otherwise, Netflix announced that it would stop reporting quarterly subscription figures starting in 2025. They justified this in their previous quarterly reports, saying that revenue and operating margins were the company’s primary measures of financial health, unlike in Netflix’s early days when their revenue and profits were minimal.
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