- Netflix reported a 19 percent year-over-year increase in its second-quarter revenue.
- The OTT content platform added 1.5 million paid memberships during the quarter.
- Netflix confirmed that it is in the early stages of expanding into the gaming space.
Netflix Inc. (NASDAQ: NFLX) stock dipped over 1 percent in the after-hours trading despite the company reporting better-than-expected second-quarter revenue and subscriber growth.
The OTT content platform posted a 19.4 percent year-over-year growth in its second-quarter revenue with 1.5 million new paid memberships.
Meanwhile, Netflix confirmed that the company is in the early stages of expanding into games, which will be included in its subscription without any additional costs just like movies and series. It will primarily focus on games for mobile devices at the beginning.
Netflix’s second-quarter revenue totaled US$7.34 billion, compared with US$6.15 billion in the year-ago quarter.
The company added 1.54 million subscribers during the quarter and had 209.18 million paid memberships at the end of June.
While reporting the first-quarter results, in which the company missed its subscriber addition estimates, Netflix had projected 18.8 percent topline growth in the second quarter with one million new subscribers.
The Asia Pacific region contributed to about two-thirds of total paid net additions in the quarter, while net additions declined slightly in North America.
The average revenue per membership rose 8 percent. When excluding the foreign exchange impact of over US$277 million, ARM rose 4 percent.
Netflix posted a second-quarter net income of US$1.35 billion, or US$2.97 per diluted share, against US$720 million, or US$1.59 per share in the year-ago quarter. The second-quarter earnings however missed its earlier forecast of US$1.44 billion, or US$3.16 per share.
For the third quarter ending September, Netflix targets 3.50 million news subscribers with global paid memberships expected to reach 212.68 million.
The company forecasts 16.2 percent topline growth to US$7.48 billion while net income is anticipated to come in at US$1.16 billion, or US$2.55 per diluted share.
Netflix has a market capitalization of US$235.47 billion and has a P/E ratio of 65.979.
Netflix’s stock lost 1.79 percent year to date. It traded in the range of US$458.60 to US$593.29 in the last one year.
The shares ended Tuesday’s trading at US$531.05, down 0.23 percent.
Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
The reference data in this article has been partly sourced from Refinitiv.