Netflix posted record-setting earnings and revenue for the second quarter, and signaled there’s more growth on the horizon.
The streaming giant’s revenue rose 15.9% year over year to $11.08 billion, and earnings hit $7.19 per share.
Analysts surveyed by Bloomberg expected quarterly revenue of $11.06 billion and earnings of $7.09 per share.
Netflix shares rose slightly in after-hours trading following the earnings release on Thursday.
The company also raised its revenue forecast for 2025 to $44.8 billion to $45.2 billion, in part because of its momentum growing subscribers and its advertising business.
Wall Street has long crowned Netflix as the streaming king. The streamer’s latest win comes on the heels of releases like “Squid Game,” which released its third and final season in late June. Netflix said the season was its sixth biggest ever with 122 million views.
Netflix stopped reporting specific subscriber figures last quarter, which makes it difficult to gauge the platform’s user growth.
But estimates from third-party data firm Antenna suggest Netflix’s gross monthly subscriber additions in the US have fallen from their peak.
Analysts are focused on how the platform continues to scale through live sports and TV, as well as creator-driven partnerships.
So far, Netflix has announced a return of a Christmas Day NFL game, a September fight between Canelo Alvarez and Terrence Crawford, and a forthcoming reboot of the late-80s hit “Star Search,” among other live programming.
The live content serves dual purposes: helping Netflix continue to grow its subscription base and providing ample opportunities for its budding advertising business.
Netflix expects its advertising revenue to double this year, as executives previously outlined on the first-quarter earnings call.
Nearly half of new Netflix subscribers in the US chose the ad tier from January to May, according to Antenna data.
At $8 a month, Netflix’s ad plan is starting to look like a bargain. It’s the same as Paramount+’s ad tier and cheaper than comparable plans from Disney+, Hulu, and HBO Max. The ad-version of Amazon Prime Video costs $15 a month. And Peacock is planning to raise the price of its ad plan to $11 a month, Vulture reported on Thursday.
This story is developing. Please check back for updates.
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