Netflix on Thursday touted its strong business growth in the second quarter, as its subscriber count grew by 8.05 million to about 278 million in the period.
Revenue was up 17% to nearly $9.6 billion in the quarter, the Los Gatos, Calif., streamer reported. Net income was $2.1 billion, compared with $1.49 billion in the same period of 2023.
The company beat Wall Street’s estimates on revenue, earnings and subscriber additions. Analysts on average had projected that Netflix would increase its customer base by around 4.5 million subscribers, according to FactSet.
Netflix reported earnings of $4.88 a share, topping analyst expectations of $4.74. Analysts had projected revenue of $9.53 billion, according to FactSet.
Netflix has impressed investors as the company cracks down on password sharing, grows its lower-priced ad-supported subscription tier and puts out a steady stream of popular original programs.
The steamer’s stock price has increased roughly 35% so far this year. Its shares closed at $643.04 Thursday, down 0.68%. The shares fell about 2% in after-hours trading.
“If we execute well — better stories, easier discovery and more fandom — while also establishing ourselves in newer areas like live, games and advertising, we believe that we have a lot more room to grow,” Netflix said in a letter to shareholders on Thursday.
Netflix has remained the dominant subscription streaming platform in part because of its content prowess with licensed titles and its own franchises, including the Shonda Rhimes Regency-era alt-history romance series “Bridgerton.” In the second quarter, Netflix released popular programs including the third season of “Bridgerton”; limited drama series “Baby Reindeer,” which received 11 Emmy nominations on Wednesday; the Jennifer Lopez action movie “Atlas”; and “The Roast of Tom Brady,” which the streamer said attracted its largest live audience so far.
The company forecast revenue growth of 14% to 15% this year. The number of signups for subscriptions with ads grew 34% in the second quarter compared to the previous quarter.
