'Squid Game' boosts Netflix quarter, company raises revenue guidance
Some investors had hoped for more from the dominant movie and TV streaming service, analysts said. Netflix shares had risen nearly 44% this year ahead of the earnings report on Thursday. The stock fell 1.8% to $1,251.86 in after-hours trading.
Netflix has been building an ad-supported service to reel in price-sensitive viewers, though it has said advertising will not be a primary driver of revenue growth this year. The company also has added live events such as WWE wrestling to draw advertisers and viewers.
For April through June, Netflix posted diluted earnings per share of $7.19. That topped the $7.08 consensus estimate of analysts polled by LSEG.
The company raised revenue guidance for 2025 to $44.8 billion to $45.2 billion, citing the weakening of the U.S. dollar plus "healthy member growth and ad sales." Its previous guidance was up to $44.5 billion.
Investing.com analyst Thomas Monteiro said investors were expecting "a much stronger upward revision" to 2025 guidance.
"The full-year outlook now feels quite conservative, which is problematic for a stock priced for perfection," Monteiro said.
"At this stage, the company appears overly dependent on further price increases — at least through 2026 — to drive revenue," he added.
For the just-ended quarter, net income came in at $3.1 billion, edging forecasts of $3.06 billion. Revenue totaled $11.08 billion, above the $11.07 billion analyst projection.
Netflix released the third and final season of dystopian Korean drama "Squid Game" a few days before the second quarter ended in June. The show is the most popular non-English Netflix show in the streaming service's history. Season three racked up 122 million views, Netflix said.
Other releases during the quarter included "Sirens," "The Four Seasons" and a third season of "Ginny & Georgia."
The streaming video pioneer stopped disclosing quarterly subscriber numbers this year, instead urging investors to focus on profit as a measure of its success. It said member growth was ahead of its forecast but occurred late in the quarter, which limited the impact on second-quarter revenue.
Looking ahead, Netflix forecast revenue of $11.5 billion and net income of nearly $3 billion. Analysts had projected $11.3 billion and $2.9 billion, respectively.
The company has new seasons of two of its biggest shows coming later this year. "Wednesday" returns in August, and the final episodes of "Stranger Things" will be released in November and December.
Chief Financial Officer Spencer Neumann, asked about the company's view on acquiring assets from other media companies, said Netflix would be "choosy."
"We've historically been more builders than buyers, and we continue to see big runway for growth without fundamentally changing that playbook," Neumann said during a post-earnings video.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Metro
25 minutes ago
- Metro
Stranger Things fans 'figure out who's going to die' after season 5 trailer
To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Stranger Things fans think they may have worked out which characters are set to die in season five. The trailer for the fifth and final season of Netflix's Stranger Things was released earlier this week, and fan theories have been coming in thick and fast about how the show will be wrapped up. The series has shown over the years that it's not afraid to kill off a lovable character or two – RIP to Eddie Munson and Dr Alexei. However, usually the show will introduce a character in a series for the audience to fall in love with them, and then kill them off. This has saved them from getting rid of any of the main cast. But, this said, the upcoming season is going to be the last, so is it finally time to kill off some of the main cast? After watching the trailer, fans think they know who's going to be killed off…Steve Harrington. The trailer two-and-a-half-minute trailer, opens on Steve Harrington (Joe Keery) who is tinkering with a device in a van, before ominously proclaiming 'burn commencing in five, four, three, two, and…' The camera flicks to all our major players, including Millie Bobby Brown as Eleven, Winona Ryder as Joyce, Maya Hawke as Robin and Natalie Dyer as Nancy all in a room together with grim expressions on their face. Across the internet, Steve's death is a leading theory among fans, with some pointing to Nancy crying in the trailer. 'People saying Nancy was crying bc either Jonathan or Steve dies imagine having Steve Harrington die around the holidays,' said itslydiaaaa on X. 'I SWEAR TO GOD THAT NANCY CRYING SCENE IF STEVE DIES I SWEAR,' said maxcrzzz. Of course, Nancy crying could mean that any number of characters have died, including her close family members or current boyfriend, Jonathan. 'Everyone thinks Nancy's crying over Jonathan or Steve's death but what if it's because she came home to find Karen & Ted slaughtered and Holly missing? Then what? 😭' said JoshTheMedic on X. 'My prediction is Jonathan will go out in a hero moment with the clash song playing. And obviously that is Nancy crying because of it,' said CinemaGulp. Fans on Reddit have also pointed out that while Steve is a fan-favourite character, his death wouldn't prohibit the rest of the characters from moving on with their lives, meaning the ending could still be considered somewhat happy. 'From my perspective, the main people that will be affected by his death will be Robin and Dustin (obvi maybe even Nancy but she still has Jonathan, Mike, and her entire family). I feel like this would be the death that would least impact the entire group,' said Strangestsalmon. In the trailer, Will can be heard telling someone to 'RUN!' On Twitter, fans have shared 'leaked footage' that supposedly proves Will was talking to Steve, which could further prove that his life is going to be in jeopardy. While this leaked footage may be total nonsense, it is also supported by another fan theory based on a video shared by the creators of the series, the Duffer brothers- which has since been clipped on X. While mapping out a scene with Funk Pop toys, the Duffer brothers showed that the toy depicting Steve was flat on its back and out of the action – could this mean that he's killed off? Metro asked readers on Facebook about their theories, and fans were happy to share their two cents. 'I have a theory but it's just my opinion I think between Steve, Jonathan or 11 might not survive it's just my theory nothing else,' said Michelle Mckenzie. '11, Steve, Hopper, Will, Max will die. In the trailer, Dustin is sobbing into Hoppers chest. If it's all just a D&D game, I'm burning the place down,' said Joni Blanchard. Of course, the Duffer brothers could just go rogue and kill them all, and we know they're not afraid to play with our feelings. More Trending At the end of season four, Max's life was left hanging in the balance, comatose in a hospital after being attacked by Vecna. Things also didn't look good as Vecna's plan came to fruition and the Upside Down was unleashed onto Hawkins. The season ended with the an earthquake of over 7 on the Richter scale tearing the town apart, with the Upside Down leaking into the town. The series is set to be released in November, with more episodes expected to be staggered in their release and follow in the weeks after. The first of the three releases will be on November 26, with the second taking place on December 25, and the final shows released on December 31. Got a story? If you've got a celebrity story, video or pictures get in touch with the entertainment team by emailing us celebtips@ calling 020 3615 2145 or by visiting our Submit Stuff page – we'd love to hear from you. View More »
The Independent
25 minutes ago
- The Independent
Jennifer Love Hewitt addresses rumors about feud with Sarah Michelle Gellar
Jennifer Love Hewitt addressed speculation about a long-standing feud with her I Know What You Did Last Summer co-star, Sarah Michelle Gellar. Hewitt revealed in an interview that she and Gellar have not spoken since the original film's release in 1997. She expressed confusion over the feud narrative, suggesting it stems from a desire for dramatic conflict rather than reality. Gellar later clarified why she was not photographed with Hewitt at the recent film premiere, stating she was with her children and Hewitt did not attend the after-party. Both actors posted on Instagram celebrating the new film, with Hewitt acknowledging the original cast and Gellar explaining her interactions at the event.
The Independent
25 minutes ago
- The Independent
Insect may have caused stampede following Beyoncé concert
An insect may have caused a stampede at an Atlanta metro station as concert-goers left a Beyoncé concert, transit officials say. The 'Single Ladies' singer is on a world tour to promote her country album 'Cowboy Carter.' After a show in Atlanta, fans packed the Vine City Station early Tuesday on their way home from the Mercedes-Benz Stadium downtown. Chaos ensued as an overcrowded escalator started to speed up and then abruptly stop, throwing people to the ground, according to NBC News affiliate WXIA. Transit officials now say the commotion and the injuries of nine people that followed were caused by a girl screaming about a bug. Metropolitan Atlanta Rapid Transit Authority police who were there during the stampede said they heard a scream, and witnesses reported 'the person who screamed was reacting to an insect,' Stephany Fisher, MARTA's senior director of communications, said Friday, per NBC News. 'I believe there's also video on TikTok of a woman claiming it was a 10-year-old relative who screamed when she saw a bug,' Fisher said. He added: 'Video from the rail station clearly shows people reacting and running, but you can't see who screamed or what they were reacting to.' One person caught in the chaos on the escalator suffered a broken ankle, and seven others were hospitalized with cuts and scrapes, the outlet reported. Officials say the ninth person declined to go to the hospital. In a video of the stampede, concert-goers can be seen sliding down an escalator. People can be heard screaming, and the person recording the video was asking if everyone was okay. Several people were seen on the floor of the station, and the person filming said, 'I'm shocked only two people end up on the ground.' Scott Kreher, police chief of the Metropolitan Atlanta Rapid Transit Authority, shared a similar story to Fisher. He said, per WXIA, the commotion was sparked by a girl who unexpectedly saw a cockroach or "palmetto bug.' "There was someone who started to scream outside of the station. She was startled by a bug outside the large crowd," acting CEO Rhonda Allen told the MARTA board Thursday, the local outlet reported. Allen continued: "Imagine a group of people saying, 'I want to get down I want to get down,' began to usher themselves down the escalator.' The official explained how the weight and abrupt movement from the stampede caused the escalator to malfunction. She said the escalator passed an inspection days before the incident. Allen said MARTA will have a 'more aggressive approach' when staffing these types of events and better manage the flow of people onto escalators.
