On Wednesday, streaming platform Netflix announced its second-quarter financial results, showing its revenue missed analyst forecasts.
Its stock price went up by 0.59% to $477.59 per share on July 19. However, it is expected to decline by -8.29% to $438.00 apiece in the upcoming session.
The company’s earnings per share increased by $3.29, beating experts’ $2.84 estimates. Also, it is better than the prior $2.88 reading.
Moreover, the revenue of Netflix rose to $8.19 billion but failed to top the $8.27 billion consensus. Still, it is higher than the previous $8.16 billion data.
Its income movement concealed the additional 5.90 million new streaming customers from April to June. Furthermore, it overshadowed its earnings that beat forecasts.
According to the company, they still have work to do for growth reacceleration despite their steady progress.
Regardless of the increase in subscribers on Netflix, its average revenue per member dropped by 3.00% from last year. It was partially led by new sign-ups from countries wherein the streaming platform charges lower.
Like its rivals, the company deals with strikes from Hollywood actors and writers. As a result, many film and television productions were pushed to shut down. On the other hand, analysts said Netflix would benefit because of its global production.
Password Sharing Stopped in Netflix, Members Rose
Recently, Netflix decided to crack down on password sharing for its subscribers. However, members remained unaffected as their number increased, gaining six million subscribers.
Its crackdown on password sharing is implemented in selected countries and aims to expand that policy on all markets globally. The company offered its members the option to add users for a price to deal with the issue.
Netflix reported closing its second quarter of 2023 with 238 million members and a profit of $1.50 billion. It mentioned seeing a positive conversion of borrowers to full-paying members and good results from the extra member feature.
Also, the streaming platform provided an option to move viewing profiles to separate accounts. In addition, it introduced an ad-supported tier that removes the basic plan in some countries.
