Netflix Inc. will announce its second-quarter earnings results shortly after the closing bell, with all eyes focused on the company’s subscriber digits.
According to Visible Alpha projections, the streaming giant is expected to post a revenue of $9.51 billion, slightly higher than $9.37 billion registered in the first trimester and a 16.1% jump from the same timeframe a year ago. Meanwhile, net income is anticipated to stand at $2.1 billion or $4.74 per diluted share, which is less than $2.3 billion or $5.28 per diluted share recorded in the previous quarter but above $1.5 billion or $3.29 per diluted share registered in the same three-month period in 2023.
The biggest question is, will the business be able to top its subscriber numbers? In the first quarter, Netflix showed the total figure was at 269.6 million, with an annual growth of 16%. As per JP Morgan’s forecasts, the company is seen further expanding the amount of its paid customers by 5 million net new subscribers. However, the firm revealed that beginning in 2025, it will no longer be sharing these metrics. So far, in 2024, some of the more prominent titles on the streaming platform have been Bridgerton, Baby Reindeer, and the 3 Body Problem, alongside the reality show Love is Blind.
Among some of the more notable novelties surrounding the company are its plans to venture more into sports. Netflix and NFL previously closed a three-year deal, as the former will be streaming two premium Christmas matchups in 2024, and at least one holiday game in 2025 and 2026. “There are no live annual events, sports or otherwise, that compare with the audiences NFL football attracts,” Netflix Chief Content Officer Bela Bajaria commented. Furthermore, the business also inked a 10-year agreement with the World Wrestling Entertainment (WWE), valued at $5 billion. WWE’s weekly show “Raw” will be moving to the streaming platform in January 2025.
At the moment, Netflix still enjoys the title of the most popular streaming service judging by the number of users, while Amazon Prime Video and Disney+ take the second and third spot.
Netflix’s market capitalization currently stands at $282.8 billion, with the company’s stock up 35% year-to-date.
