The final season of “Squid Game,” which has captured global attention, helped Netflix meet Wall Street’s revenue expectations for the second quarter. The streaming giant also raised its revenue guidance for the year.
After hours, shares dipped close to 2%, settling at $1,252.94, although they’ve risen nearly 44% so far this year following the earnings report.
The company explained that its higher forecasts were largely due to a weaker US dollar.
From April through June, Netflix reported earnings of $7.19 per share, slightly exceeding analyst expectations, which were pegged at $7.08, according to LSEG.
Netflix has increased its revenue forecast for 2025 from $44.8 billion to $45.2 billion, attributing this revision to a weakening dollar along with steady member growth and sales from advertising. Previous guidance had reached up to $44.5 billion.
During the last quarter, Netflix’s net profit stood at $3.1 billion, surpassing its forecast of $3.06 billion, while total revenue was $11.08 billion, exceeding analyst predictions of $11.07 billion.
Netflix dropped the third and final season of “Squid Game” just days before the quarter ended in June. Surprisingly, this series has become the least popular non-English Netflix show ever, despite having garnered 122 million views for its third installment.
Other notable releases within the quarter included the third season of “Siren,” “Four Seasons,” and “Ginny & Georgia.”
This year, Netflix has decided to stop disclosing subscriber numbers, encouraging investors to focus more on profits as a key indicator of success.
The company mentioned that member growth was better than expected, but it came later in the quarter, which limited its effect on the second quarter’s revenue.
To boost revenue, Netflix is also working on ad-supported services aimed at cost-conscious audiences. They’ve added live events like WWE Wrestling to attract advertisers and viewers.
Looking ahead, Netflix is projecting revenue of $11.5 billion and a net profit of nearly $3 billion, while analysts had estimated $11.3 billion and $2.9 billion, respectively.
Later this year, Netflix plans to roll out new seasons of its top two shows. “Wednesday” will return in August, and the final season of “Stranger Things” will be released between November and December.
Although Netflix has stated it doesn’t expect advertising to be a major revenue driver in 2025, they are still exploring various strategies for growth.
