The Netflix logo is shown on one of their Hollywood buildings in Los Angeles, California, U.S., July 12, 2023. REUTERS/Mike Blake/File Photodisappointed Wall Street on Wednesday with second-quarter revenue that fell short of analyst estimates, sending shares tumbling more than 5% in after-hours trading.
"While we’ve made steady progress this year, we have more work to do to reaccelerate our growth," the company said in its quarterly letter to shareholders. Quarterly revenue climbed 2.7% from a year earlier to $8.2 billion, shy of analyst forecasts of $8.3 billion. The company estimated third-quarter revenue would hit $8.5 billion. Wall Street had been forecasting $8.7 billion.
While the company added subscribers, it said average revenue per member fell 3% from a year earlier. That was partly because many of the new sign-ups came in countries where Netflix charges lower prices.