The ultimate season of worldwide phenomenon “Squid Game” helped Netflix prime Wall Road earnings targets for the second quarter, the streaming service stated Thursday because it raised income steering for the yr.
Shares of the corporate, which had risen almost 44% this yr forward of the earnings report, dropped almost 2% to $1,252.94 in after-hours buying and selling.
The corporate stated its increased income forecast “primarily reflects the weakening of the US dollar.”
For April via June, Netflix posted diluted earnings per share of $7.19. That topped the $7.08 consensus estimate of analysts polled by LSEG.
The corporate raised income steering for 2025 to $44.8 billion to $45.2 billion, citing the weakening of the US greenback plus “healthy member growth and ad sales.”
Its earlier steering was as much as $44.5 billion.
For the just-ended quarter, internet earnings got here in at $3.1 billion, edging forecasts of $3.06 billion. Income totaled $11.08 billion, above the $11.07 billion analyst projection.
Netflix launched the third and closing season of dystopian Korean drama “Squid Game” a number of days earlier than the second quarter resulted in June.
The present is the most well-liked non-English Netflix present within the streaming service’s historical past. Season three racked up 122 million views, Netflix stated.
Different releases through the quarter included “Sirens,” “The Four Seasons” and a 3rd season of “Ginny & Georgia.”
The streaming video pioneer stopped disclosing quarterly subscriber numbers this yr, as an alternative urging traders to concentrate on revenue as a measure of its success.
It stated member progress was forward of its forecast however occurred late within the quarter, which restricted the affect on second-quarter income.
Netflix has been constructing an ad-supported service to extend income and reel in price-sensitive viewers. It additionally has added dwell occasions akin to WWE wrestling to attract advertisers and viewers.
Trying forward, Netflix forecast income of $11.5 billion and internet earnings of almost $3 billion.
Analysts had projected $11.3 billion and $2.9 billion.
The corporate additionally has new seasons of two of its largest reveals coming later this yr. “Wednesday” returns in August, and the ultimate episodes of “Stranger Things” will probably be launched in November and December.
Netflix beforehand stated it doesn’t anticipate promoting to be a main driver of income progress in 2025.
