Netflix Reports Q2 Earnings Beat as Subscribers Surge

Netflix (NFLX) posted better-than-expected results for nan 2nd 4th arsenic subscribers surged, though nan streaming elephantine issued soft guidance for nan 3rd quarter.

The institution reported second-quarter gross of $9.56 billion, up 16.8% year-over-year, and supra analysts' estimates. Net income of $2.15 cardinal aliases $4.88 per stock fell from nan anterior 4th but improved from $1.49 cardinal aliases $3.29 per stock a twelvemonth earlier.

The gains came arsenic Netflix added complete 8 cardinal paying subscribers successful nan 4th for a full of 277.65 cardinal world streaming paid memberships, much than analysts had anticipated.

Netflix Phases Out Ad-Free Basic Plan successful US, France To Boost Ad Business

As portion of its strategy to boost its advertizing business, Netflix said it would beryllium phasing retired its basal ad-free tier successful nan U.S. and France.

The institution has already phased retired nan basal scheme successful nan U.K. and Canada, which Netflix said contributed to a 34% sequential jump successful memberships pinch ads successful nan 2nd quarter.

Netflix said integrating ads onto nan level could raise gross from advertisers and profit for nan streaming giant's business, allowing it to connection customers little subscription prices.

The institution said it anticipates $9.73 cardinal successful gross for nan 3rd quarter, somewhat little than expert projections compiled by Visible Alpha.

Netflix shares were 1% higher successful extended trading Thursday arsenic of 5:30 p.m. ET pursuing nan release. They've gained astir 32% since nan commencement of nan twelvemonth done Thursday's close.