Netflix reported second-quarter profit growth driven by new membership signups and price increases. The company earned $3.4 billion, or 80 cents per share, an increase from $3.13 billion or 72 cents per share in the same period last year. Revenue rose 13% to $12.56 billion, compared to $11.08 billion previously. These results were largely in line with Wall Street expectations, which had projected earnings of 79 cents per share on revenue of $12.58 billion.
Despite the quarterly growth, Netflix shares fell sharply after the company provided a weaker-than-expected forecast for the current quarter. The company expects revenue growth of about 12%, trailing analysts' expectations of 13% or $13 billion. This marks a second consecutive quarter of slowing sales growth, fueling investor anxiety and deepening doubts about the streaming giant's ability to sustain growth momentum.
Following the report, shares fell $5.33, or 7.2%, to $69.02 in after-hours trading and tumbled a further 9.2% before the bell on Friday. Netflix has been one of the worst stocks in the market over the past 12 months, with shares sinking more than 40 percent as concerns about the company's prospects persist. Additionally, the company walked away from its offer to buy Warner Bros. Discovery’s studio and streaming business in February.