Netflix said on Tuesday that it lost 970,000 customers in the second quarter of 2022, far fewer than the two million users it had predicted would leave the streaming service. Additionally, the business forecasted adding another million members in the third quarter, which was a little below than Wall Street projections. However, it was evident that investors were pleased with the findings since Netflix shares increased by as much as 8% on Tuesday after-hours trading.
All eyes were on Netflix on Tuesday as Wall Street, Hollywood, and the media sector were very interested in its membership figures after it revealed in April that it had lost 200,000 customers, causing a significant decline in its share price. This year, the company’s stock price declined.
As we have done for the past 25 years, we face the challenge and opportunity of accelerating the development of our income and membership while also finding new ways to monetize our sizable audience effectively. Given our $30 billion+ in annual revenue, $6 billion operating profit from the prior year, increasing free cash flow, and solid balance sheet, we are in a great position. The business revealed that it lost subscribers for the first time in more than ten years in its financial report for April. Hundreds of employees were let go, its stock plummeted, and the streaming industry as a whole came under intense scrutiny.