Shares of Netflix (NASDAQ: NFLX) are up a tepid 1% in pre-market trading after the company reported mixed second quarter earnings.
The streaming giant’s revenue beat estimates and the company confirmed that it will expand into video games. However, the company missed on its earnings expectations and provided underwhelming forward guidance.
Netflix’s earnings per share (EPS) for the quarter was $2.97 U.S. versus $3.16 U.S. expected by analysts. The company’s revenue came in at $7.34 billion U.S. compared to $7.32 billion U.S. anticipated by analysts.
When it comes to subscriber growth, Netflix said it added 1.54 million users to finish the quarter with over 209 million paid memberships in total. That compares to 1.19 million ne subscribers forecast by Wall Street.
Netflix said its revenue growth this past quarter came from an 11% increase in average paid streaming memberships and 8% growth in average revenue per membership.
For the current third quarter, Netflix said it expects 3.5 million net subscriber additions, while Wall Street had anticipated 5.46 million net new subscribers for the third quarter.
In the first half of this year, Netflix said it spent $8 billion in cash on content and expects content amortization to be around $12 billion for the full year.
The company also confirmed it is pushing into the video game space. Netflix said it views gaming as a new content category, comparing it to its expansion into original films, animation and unscripted television shows.
