It seems that the concept of “underpromise, over-delivery” remains.
In a quarterly earnings call on Tuesday, Netflix reported a loss of approximately 970,000 subscribers, far less than the $ 2 million figure it had forecast in April.
The company reported revenue grew 9% the year before the second quarter and the company’s shares have risen about 12% since the start of the week.
But it is trading at about $ 215.75, which is well below the nearly $ 600 stock price it ordered earlier this year.
It has been an interesting time for the streaming company. Netflix reported its first subscriber loss in more than 10 years in the first quarter, blaming password sharing, among other factors, and has also laid off a large number of employees. The broadcast giant is also facing growing competition from HBO Max, Hulu, AppleTV +, Amazon Prime Video and more.
Netflix said it plans to shift its strategy to interesting, big-name movies for which “Hollywood has lost its taste,” The Atlantic reported last week. The company also recently acquired an animation studio, according to The Verge.
Last week, the streaming service said it would partner with Microsoft on the cheapest, ad-supported subscription model, which is likely to launch in 2023, according to the earnings call.
Reed Hastings, co-CEO of Netflix, said in the call that he was proud of the content Netflix had produced in the second quarter, such as Stranger Things. However, “our enthusiasm is tempered by the less bad results,” he said, in terms of subscriber losses.