Netflix Q2 Profit Beats View, Subscriber Loss Below Warning; Stock Up 6%
Shares of Netflix Inc. (NFLX) gained over 6% in extended session on Tuesday after the online-video streaming giant reported second-quarter results, with earnings beating Street view and its subscriber loss being below than expected.
Netflix lost only 0.97 million subscribers globally in the quarter, which was better than the company’s estimate of 2 million. It ended the quarter with 220.67 million subscribers. The company lost 1.30 million customers in the U.S. and Canada region during the quarter, while EMEA region lost 0.77 million subscriber, LATAM were up slightly by 0.01 million and APAC rose 1.08 million.
Looking ahead, the company expects to add 1 million subscribers in the third quarter of 2022.
“Q2 was better-than-expected on membership growth, and foreign exchange was worse-than-expected (stronger US dollar), resulting in 9% revenue growth (13% constant currency),” the company said in a statement.
Los Gatos, California-based Netflix’s second-quarter profit rose to $1.44 billion or $3.20 per share from $1.35million or $2.97 per share last year. On average, 34 analysts polled by Thomson Reuters expected earnings of $2.96 per share for the quarter.
Netflix’s revenues for the quarter rose 8.6% to $7.97 billion from $7.34 billion last year. Analysts had a consensus revenue estimate of $8.04 billion for the quarter.
Revenue growth was driven by an 6% increase in average paid streaming memberships and 2% growth in average revenue per membership.
Looking forward to the third quarter, Netflix expects revenues of $7.84 billion and earnings of $2.14 per share. Analysts currently expect earnings of $2.77 per share and revenues of $8.08 billion.
NFLX closed Tuesday’s trading at $201.63, up $10.71 or 5.61%, on the Nasdaq. The stock further gained $12.42 or 6.16% in the after-hours trading.
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