Netflix Shares Jump 8% as Q2 Subscribers Less than Expected, Sees Return to Gains
2022.07.20 01:02
Netflix Shares Jump 8% as Q2 Subscribers Less than Expected, Sees Return to Gains
By Davit Kirakosyan
Netflix (NASDAQ:NFLX) shares were trading more than 8% higher after-hours Tuesday following the streaming giant’s second-quarter results, which showed fewer than expected subscriber losses in the quarter and calls for a return to subscriber gains in the current quarter.
The company reported EPS of $3.20, versus the consensus estimate of $2.96. Revenue grew 9% year-over-year (or 13% at constant currency) to $7.97 billion, slightly below the consensus estimate of $8.03 billion.
Revenue growth was driven by a 6% increase in average paid memberships and a 2% increase in ARM (Average Revenue per Membership). Global streaming paid net additions in Q2 were -970,000, compared to the expected loss of 2 million.
The company provided its Q3 outlook, expecting revenue of $7.84 billion, compared to the consensus of $8.08 billion, and EPS of $2.14, compared to the consensus of $2.77.
The company estimates 1 million global streaming paid net additions in Q3.
