Netflix Inc (NASDAQ:NFLX) shares fell 8% in after-hours trading as the streaming giant’s second-quarter revenue missed expectations.
While earnings per share (EPS) of $3.29 far exceeded the Street’s estimate of $2.82, revenue of $8.19 billion fell short of the forecast $8.26 billion.
In the year-ago quarter, the company posted EPS of $3.20 on revenue of $7.97 billion.
The streamer also added almost three times as many new subscribers as expected, with 5.89 million net additions compared to the expected 2.1 million.
The company said in a letter to shareholders that its 2Q revenue of $8.19 billion and operating profit of $1.83 billion were “generally in-line” with their forecast.
It expects revenue to accelerate in the second half of 2023 on the continued roll-out of its paid sharing option and growth of its ad-supported membership tier.
“While we’ve made steady progress this year, we have more work to do to reaccelerate our growth,” Netflix said.
“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.”
For the third quarter, Netflix forecast revenue of $8.52 billion, up 7% year-over-year but below the Street’s expectation of $8.67 billion, and EPS of $3.52.
Netflix shares were trading down 8% at US$438.15 following the release of its results.
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