Netflix added 10 million net new global subscribers in Q2, beating expectations. Netflix missed analyst expectations on earnings per share but beat revenue. Here the highlights:
- Earnings per share (EPS): $1.59 vs. $1.81 expected
- Revenue: $6.15 billion vs. $6.08 billion
- Global paid net subscriber additions: 10.09 million vs. 8.26 million expected
“In Q1 and Q2, we saw significant pull-forward of our underlying adoption leading to huge growth in the first half of this year (26 million paid net adds vs. prior year of 12 million). As a result, we expect less growth for the second half of 2020 compared to the prior year.”
The company expects 2.5 million net subscribers for Q3, while analysts were expecting 5.27 million. Netflix also announced during the call that Chief Content Officer Ted Sarandos will become co-CEO and join the Board of Directors. Investors are not happy with the projections for Q3, stock is down more than 10%.
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