Netflix Inc (NASDAQ:NFLX, ETR:NFC) shares fell after Thursday’s closing bell as a third quarter revenue guidance miss overshadowed a strong quarterly earnings report.
For Q3, Netflix expects revenue of $9.73 billion, below the $9.83 billion expected by Wall Street analysts.
It expects paid net subscriber additions will be less than the year-ago quarter, which had the first full quarter impact from paid sharing.
Earnings per share (EPS) are forecast to be $5.10, ahead of estimates of $4.70.
The streaming giant added significantly more subscribers than expected by analysts during Q2, adding 8.05 million paid subscribers bringing its subscriber count to 277.65 million, compared to expectations of 4.6 million new paid subscribers.
Ads tier membership grew 34% quarter-over-quarter, it noted.
Revenue of $9.56 billion topped estimates of $9.53 billion, while EPS of $4.88 was above the $4.70 expected.
Netflix now expects revenue growth of 14% to 15% for 2024, compared to its earlier forecast of 13% to 15% and an operating margin of 26%, up from its earlier forecast of 25%.
“Our updated revenue forecast reflects solid membership growth trends and business momentum, partially offset by the strengthening of the US dollar versus most other currencies,” the company said in a statement.
Shares of Netflix traded down 1.7% at about $632 post-earnings.