Netflix continued to exceed market expectations by adding 9.3 million new customers in the second quarter, bringing its total subscriber count to nearly 720 million. Despite this positive news, the stock still dropped by over 4% in post-market trading on Wall Street. In the first quarter, earnings per share increased to $5.28 from $2.88 the previous year, while total revenue grew by 14.8% to almost $9.4 billion. Netflix also saw significant growth in its operating profit, which rose by 54% annually to $2.6 billion.
The company also experienced a 65% increase in advertising revenue for its lower-priced subscription option, introduced a year ago. In markets where this option was available, 40% of new signups chose it. Netflix emphasized its focus on expanding its customer base and building capabilities for advertisers in a letter to shareholders.
Netflix highlighted its commitment to providing a wide range of content to satisfy different audience preferences, including TV series, films, and games. The company expressed its ambition to program on a large scale and provide high-quality content to its subscribers.
Despite facing verification problems with certificates, Netflix’s strong performance in the first quarter demonstrates its ability to attract new customers and generate revenue growth.
In conclusion, Netflix continues to outperform expectations by adding new customers and generating revenue growth despite facing challenges such as verification problems with certificates. The company’s focus on expanding its customer base and building capabilities for advertisers is evident in their letter to shareholders as well as their commitment to providing high-quality content that satisfies different audience preferences.
