Netflix Sheds Fewer Than 1M Subscribers In Q2, Exceeding Expectations

deadline.com:

Netflix beat expectations for the second quarter, reporting a decline of about 970,000 subscribers to end the period with a global total of 220.67 million.While the decline is still large in historical terms for the longtime leader in streaming, which has moved ever upward quarter by quarter for the past decade, it was smaller than analysts’ prediction for anywhere from 1.5 million to 2 million.

The company itself had warned of a potential loss of up to 2 million subscribers in the period ending June 30.Netflix issued guidance for the third quarter for an addition of 1 million subscribers.

Such a growth level would be below previous third quarters, and the cautious outlook is likely being influenced by inflation and a host of other adverse macroeconomic factors.Revenue increased 9% to $7.97 billion, while earnings per share ticked up to $3.20 from the year-ago mark of $2.97.

The earnings tally blew past the consensus forecast by analysts, while the revenue figure fell slightly short.In its quarterly letter to shareholders, the company said it had incurred $70 million in severance costs related to layoffs during the quarter, as well as an $80 million non-cash impairment of some real estate leases “primarily related to rightsizing our office footprint.” Excluding that $150 million and the foreign currency impact of a strengthening U.S.