The Netflix logo is displayed above its corporate offices on January 24, 2024 in Los Angeles, California.
Mario Tama | Getty Images
Netflix reported second quarter earnings that showcased the media giant’s position at the head of the streaming race as it added more global subscribers and saw its advertising business bloom.
Here are the results.
- Earnings per share: $4.88 vs $4.74 per share expected by LSEG
- Revenue: $9.56 billion vs.9.53 billion expected by LSEG
- Total memberships: 277.65 million global paid memberships vs. 274.4 million expected, according to StreetAccount
Revenue was roughly $9.6 billion up 17% compared to the same quarter last year, driven primarily by the increase in average paid memberships. Netflix said it now expects full year reported revenue growth of 14% to 15%, up from the original guidance of 13% to 15%.
The streamer’s global paid memberships rose 16.5% to 278 million. This marks one of the last updates Netflix will release regarding its membership numbers.
Last quarter the company warned investors it would stop providing quarterly membership numbers or average revenue per user beginning next year, noting the company is “focused on revenue and operating margin as our primary financial metrics — and engagement (i.e. time spent) as our best proxy for customer satisfaction.”
Advertising has become an increasingly important business model for media companies to boost — or in some cases, achieve — profitability for streaming. Netflix’s stock has been uplifted in recent quarters by its push to gain subscribers on its cheaper, ad-supported tier, in addition to its crackdown on password sharing.
The company has also begun adding live sports, such as NFL games on Christmas Day over the next three years, a move that will likely attract more ad dollars for the streamer.
Netflix had roughly 270 million global subscribers at the end of the first quarter, up 16% from the same period in year prior and surpassing expectations.
When Netflix made its pitch to advertisers during its Upfront presentation in May, the company said its ad-supported tier had amassed 40 million global monthly active users, nearly double the figure it had shared months earlier.
Netflix’s stock has been uplifted by its crackdown on password sharing and the addition of a cheaper, ad-supported tier.
This is breaking news. Please check back for updates.
