Netflix shared its second-quarter earnings report after the bell on Wednesday, and the numbers were not as great as the analysts expected. As a result, the company’s shares have dipped more than 4% in after-hours trading.
Netflix reported revenue of $8.19 billion, which is 2.7% higher compared to the same period in 2023 but still fell short of analysts’ expectations of $8.30 billion. However, the streamer beat the estimates with $3.29 in adjusted earnings per share compared to the $2.90 expected while also adding 5.89 million new subscribers versus the 2.1 million net expected.
In an accompanying statement, Netflix said that it expects growth in revenue in the second part of 2023 with the continued adoption of its ad-supported plan and paid sharing. The company introduced the ad-supported plan in late 2022 while also cracking down on password sharing and making users pay extra if they want to share their accounts.
“While we’ve made steady progress this year, we have more work to do to reaccelerate our growth, “Netflix said in a statement. “We remain focused on: creating a steady drumbeat of must-watch shows and movies; improving monetization; growing the enjoyment of our games; and investing to improve our service for members.”
Netflix stock closed at $477.59 per share on Wednesday, marking a 61.92% year-to-date jump. The shares dropped down to $456.62 in after-hours trading after the mixed earnings report came to light.
