Netflix Shares Jump 8% as Q2 Subscribers Less than Expected
Netflix shares were trading more than 8% higher after-hours Tuesday following the streaming giant's second-quarter results,
which showed fewer than expected subscriber losses in the quarter and calls for a return to subscriber gains in the current quarter.
The company reported EPS of $3.20, versus the consensus estimate of $2.96.
Revenue grew 9% year-over-year to $7.97 billion, slightly below the consensus estimate of $8.03 billion.
Revenue growth was driven by a 6% increase in average paid memberships and a 2% increase in ARM (Average Revenue per Membership).
Global streaming paid net additions in Q2 were -970,000, compared to the expected loss of 2 million.
The company estimates 1 million global streaming paid net additions in Q3.