Netflix on Thursday beat analyst estimates for global paid net subscriber additions during the second quarter. The streaming video giant announced that it added 10.09 million subscribers during the quarter while analysts expected around 8.26 million subscribers. The company also missed analyst expectations on earnings per share but reported its revenue beat market expectations. The mixed numbers show that people continue to subscribe to Netflix while they stay at home due to coronavirus. Also Read - Jio TV+ to bring Netflix, Disney+ Hotstar and 10 other OTT platforms in one spot
Netflix is not slowing down during pandemic
During the second quarter of this year, Netflix reported $6.15 billion in revenue beating expectations of $6.08 billion. However, according to a Refinitiv survey of analysts, the earnings per share of $1.59 was lower than $1.81 expected. The results show the effect of full three of a pandemic. CNBC reports that Netflix missed out on earnings per share expectations due to a one-time charge related to research and development tax credits in California. However, the road ahead might be more challenging that previously anticipated. Also Read - Netflix adds new shuffle button for some users to suggest similar content
The company is providing third-quarter revenue guidance of $6.33 billion, which is below analyst estimates of $6.40 billion. Refinitiv also notes that projected third quarter earnings of $2.09 per share is above analyst estimates of $2.01. However, the big blow in guidance came in the form of net subscriber additions. Netflix expects to add 2.5 million net subscribers during the third quarter of this year. This is less than half of analyst estimates of 5.27 million. The guidance was dismal and it became evident when the stock dropped almost 9 percent after hours. Also Read - OnePlus TV new update brings Netflix connectivity improvements, support for 3rd party AirPlay service apps
The company also announced that Ted Sarandos is being promoted to co-CEO and Hastings confirmed that he plans to stick with the company. “I’m in for a decade,” he said, according to CNBC. Sarandos will retain his current role and join the board. The company said Chief Product Officer Greg Peters will take additional role of chief operating officer. While Netflix continues to grow, there is a growing fatigue among consumers around subscription and it seems the company is taking a cautious approach. With its 2020 slate full of new content, it won’t fall behind when it comes to new TV shows or movies.