(CTN News) – Although Netflix Inc topped Wall Street earnings forecasts for the second quarter on Wednesday, the company fell short on revenue despite a password-sharingit pick up 5.9 million added streaming TV subscribers during the period.
As of after-hours trading on Tuesday, the company’s shares were down 4.3% at $457.00, down from $477.00 during the regular session.
In addition, Netflix’s projected revenue for the third quarter of this year fell short of analyst estimates as well. In the second half of the year, the company is expecting revenue growth to accelerate as a result of increased demand.
It was stressed in the company’s quarterly letter to shareholders that while the company has made steady progress in the last quarter, it still has more work to do in order to reaccelerate its growth to the level of last year.
A Netflix spokesperson said that the company planned to jumpstart revenue growth by creating a steady stream of must-see shows and movies, improving monetization, growing the enjoyment of its games, and investing in the company’s service for its members.
reported diluted earnings per share of $3.29 for the second quarter.
This was higher than the $2.86 consensus estimate of analysts surveyed.
A total of nearly 6 million new subscribers were added to the service, outpacing the 1.9 million that was expected by Wall Street.
Streaming competition is intensifying and Netflix has been looking for new ways to make money, as it nears market saturation in the United States and as streaming competition intensifies.
During a widespread crackdown, the company started asking password borrowers to pay in a widespread crackdown that rolled out in May after launching a cheaper tier with advertising last November.
Compared to Netflix a year ago, quarterly revenue rose 2.7% from $8.2 billion to $8.2 billion. The number surpassed analyst expectations of $8.3 billion.
It was estimated that the company would generate $8.5 billion in revenue during the third quarter. According to Wall Street forecasts, the amount would be $8.7 billion.
With a net income of $1.5 billion for the second quarter, the company exceeded estimates.