Reed Hastings, CEO of Netflix
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- Earnings per share (EPS): Expected $ 2.97 vs. $ 3.16, according to analyst Refinitiv survey
- Revenue: Forecast of $ 7.34 billion vs. $ 7.32 billion, according to Refinitiv
- Addition of Global Paid Internet Subscribers: Expected to be 1.54 million vs. 1.75 million, according to FactSet
Analysts did not expect a blockbuster quarter when it came to adding subscribers. According to FactSet, it expects 1.75 million users. The company said it added 1.54 million users to end the quarter with more than 209 million paying members.
“COVID has spawned some lumps in membership growth (increasing growth in 2020, declining growth this year) and it’s going well. We continue to improve service to our members and the world. We are focusing on providing the best stories from the inside out. ” The company said in a letter to investors.
According to Netflix, revenue growth for the quarter was due to an 11% increase in average paid streaming membership and an 8% increase in average revenue per membership.
Most eyes were paying attention to what Netflix expects in the third quarter. According to FactSet data, Netflix forecasts a net increase of 3.5 million in the third quarter and investors expect to add 4.87 million net subscribers. Much of the optimism comes from Netflix’s upcoming content slate. This is due to the large amount of content pushed back this year and later next year.
“If we achieve our forecasts, we will add more than 54 million paid net increases over the last 24 months, or 27 million on an annual basis for that period. This is the pre-COVID annual net increase. It’s in line with the rate, “the company said. Said.
The company has confirmed that it is also expanding into the game field. Netflix said it sees games as a new content category and compares it to original movies, animations, and extensions to unscripted television.
The company said potential games would be included in Netflix subscriptions at no additional cost. Initially, the focus will be on mobile games.
“We’re still excited about offering movies and TV series, and we look forward to a long way to invest and grow in all existing content categories, but we’ve been working on original programming for nearly a decade. So it’s time to learn more about how members value the game. “
Netflix also faced pressure from a harsh year-over-year comparison as last year’s consumers were in the midst of a Covid-19 pandemic, spending more time online and needing entertainment. I am.
According to Netflix, engagement per member household in the second quarter was down compared to last year, but increased by 17% compared to the second quarter of 2019.
“The pandemic has caused an extraordinary disruption to our growth, distorting the year-over-year rate as COVID’s per-household acquisitions and engagement surged in the early months of COVID,” the company reported.
This story is developing. Please update for updates.
Netflix (NFLX) Second Quarter 2021 Revenue
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