Second Quarter Highlights

For the second quarter ended on June 30th, Netflix reported revenue grew about 17% YoY to $9.56 billion, surpassing LSEG’s estimate of 9.53 billion, fueled by the boost in average paid memberships. 

During the April 1st to June 30th quarter, Netflix gained 8.05 million net paid customers, which translates to YoY growth of 16.5% YoY as it reached a global total of nearly 278 million subscribers. As of 2025, Netflix will no longer reveal such figures as it aims to focus on revenue and operating margin as primary financial metrics, along with engagement in terms of time spent as the best proxy for evaluating customer satisfaction.

Netflix earned a net income of $2.15 billion, or $4.88 per share, which is a significant rise from last year’s comparable quarter when it earned $1.49 billion, or $3.29 per share. Earnings per share of $4.88 surpassed LSEG’s consensus estimate of $4.74 per share.

Guidance

As for the third quarter, Netflix guided for revenue of $9.73 billion, which is below Wall Street’s consensus estimates of $9.83 billion. 

However, it did increase its full-year revenue guidance as it expects growth of 14% to 15%, compared with previous guidance range between 13% to 15%. Netflix also expects full-year operating margins to grow from previously reported 25% to 26%.

Numbers never tell the whole story.

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