Netflix (NASDAQ:NFLX) reported its Q3 revenue guidance on Thursday, falling short of Wall Street expectations despite surpassing Q2 forecasts due to impressive subscriber growth and a robust content lineup.
For the second quarter, Netflix posted earnings of $4.88 per share on revenue of $9.56 billion, exceeding analyst projections of $4.74 per share on revenue of $9.53 billion. The streaming service added 8 million new users in Q2, significantly outpacing the estimated 4.8 million, thanks to a strong lineup of content.
The company’s successful content slate included hit series like Bridgerton S3, Baby Reindeer, Queen of Tears, and The Great Indian Kapil Show, as well as popular films such as Under Paris, Atlas, Hit Man, and The Roast of Tom Brady, which attracted its largest live audience to date. Additionally, Netflix’s ad-supported tier saw a 34% increase in membership quarter over quarter.
Looking ahead to Q3, Netflix projected revenue of $9.37 billion, falling short of the $9.81 billion forecasted by Wall Street analysts. However, the company anticipated earnings per share of $5.10, surpassing the estimated $4.74.