Netflix (NFLX) Q2 Earnings Recap

Netflix Inc. (NASDAQ:NFLX), founded in 1997, is a video streaming giant based in Scotts Valley, California. With the aggressive international expansion in recent years, it has evolved into the biggest subscription streaming service in the world. Netflix went public in May 2002 by selling 5.5 million shares at $15. It has come a long way since then, overcoming many challenges in its decades-long journey.

The video streaming giant recently announced mixed financial results for the second quarter. The company reported earnings of $2.97 per share for the three months ended June 30, compared to $1.59 per share in the comparable period of 2020. On the other hand, analysts were expecting Netflix to report earnings of $3.18 per share.

Revenue for the quarter jumped 19.4 percent to $7.34 billion, just ahead of the $7.32 billion projected by analysts. Moreover, the company added 1.54 million paid subscribers in the quarter. Looking forward, Netflix expects to add 3.5 million new paying subscribers in the third quarter.

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Addressing shareholders, Netflix stated in a newsletter, “In Q2, revenue increased 19% year over year to $7.3 billion, while operating income rose 36% year over year to $1.8 billion. We finished the quarter with over 209m paid memberships, slightly ahead of our forecast. COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through. We continue to focus on improving our service for our members and bringing them the best stories from around the world.”

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