Revenue came in slightly below analysts’ predictions in the period from April to June, as well as the projection of Netflix for third quarter revenue. The company said they expected revenue growth to accelerate in the second half of the year.
“While we’ve made steady progress this year, we have more work to do to re-accelerate our growth“they said from the company in its quarterly letter to shareholders.
Netflix reported diluted earnings per share of $3.29 for the quarterabove the consensus forecast of $2.86 from analysts polled by refinitiv.
Netflix: why the number of subscribers skyrocketed
Netflix looked for new ways to make money as streaming competition intensifies and approaches market saturation in the United States. Within this framework, the company launched one more level economical with advertising in november and began asking password borrowers to pay up in a widespread crackdown implemented in May.
On the other hand, “they highlighted the good performance they recorded in terms of content released in the second quarter of the year. Among the most relevant, Bridgerton: Queen Charlotte and Murder Mystery 2 (film in which they star Adam Sandler and Jennifer Aniston). These not only remained in the top 10 of content on the platform during the month of May, but they also increased the views of their predecessor series and films, which graphs the engagement that can generate some titles,” said Damian Vlassichsenior equity analyst at IOL.
Wall Street: how Netflix operates in the after market
This Wednesday, July 19, Netflix shares rose 0.6% on Wall Street. Although after the second quarter earnings report was released, in the after market the papers sank more than 5% to 450.76 units.
The after market drop is explained by the company’s quarterly revenues, which rose 2.7% from a year earlier to $8.2bn, below analyst forecastswhich were located at US$8.3 billion.
The company estimated third-quarter revenue to reach $8.5 billion. While Wall Street had been forecasting $8.7 billion.
The company, like its competitors, is dealing with strikes by tens of thousands of Hollywood actors and writers. The labor action forced the shutdown of many film and television productions, though analysts say Netflix has an advantage due to its global production.
Source: Ambito
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