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published in Blogs
Jul 20, 2022
Netflix (NFLX, $214.60) loses less subscribers than expected; beats Q2 earnings forecast, despite revenue miss

Netflix (NFLX, $214.60) loses less subscribers than expected; beats Q2 earnings forecast, despite revenue miss

Netflix lost -970,000 paid subscribers over the three months ending in June , less than half of the 2 million loss that the Street had expected.

The video streaming behemoth’s earnings for the quarter came in at $3.12 per share, well above the Street consensus forecast of $2.97 per share. The figure is +5% higher from the year-ago quarter.

Revenues climbed +8.6% from the year-ago quarter to  $7.97 billion, but missing the $8.035 billion forecast.

"We have high exposure to this unprecedented appreciation in the USD because nearly 60% of our revenue comes from outside the US and swings in F/X have a large flow through to operating profit as most of our expenses are in USD and don't benefit from a stronger USD," the company mentioned in a letter to shareholders.

Netflix expects to add around 1 million subs over the quarter ending in September, compared to the market's 1.8 million forecast. Its earnings forecast of $2.14 per share for the third quarter is also was below the consensus expectation of $2.72 per share.

Related Tickers: NFLX