Netflix registers slightly better revenue but misses earning expectations

Netflix reported second-quarter earnings on Tuesday with revenue slightly better than expectations while missing earnings.

The company posted earnings of $2.97 per share compared to $3.16 as expected by analysts while posted $7.34 billion in revenue compared to $7.32 billion as expected.

Netflix said it added 1.54 million users in the quarter with over 209 million paid memberships.

“COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through. We continue to focus on improving our service for our members and bringing them the best stories from around the world,” the company said in a letter to investors.

The growth in revenue in the quarter was due to an 11% increase in average paid streaming memberships and 8% surge in average revenue per membership, the company said.

For the third quarter, Netflix said it is expecting to add 3.5 million net users while the investors had expected an addition of 5.46 million net users.

The company also confirmed its plans to expand into the gaming space. Potential games will be included in Netflix subscriptions at no additional cost, the company said adding that the focus will be on mobile games, initially.

“We’re excited as ever about our movies and TV series offering and we expect a long runway of increasing investment and growth across all of our existing content categories, but since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games,” the company said.

(With inputs from CNBC)

Picture Credits: CNBC