Netflix was able to beat revenue estimates by a hair even as it failed to meet analysts' expectations on earnings and new subscribers, the company said in its second-quarter earnings report Tuesday.
The company's stock dipped 1% in after-hours trading following the announcement that came at the closing bell.
Netflix's earnings per share for Q2 were $2.97, falling short of the $3.16 expected by analysts. The firm added 1.54 million subscribers globally over the quarter, beating their own aim of 1.12 million but missing the 1.75 million expected by analysts. Total paid subscriptions hit 209.18 million.
The company's revenue was $7.34 billion, a 19% year-over-year increase that barely beat the $7.32 billion expected.
"COVID has created some lumpiness in our membership growth (higher growth in 2020, slower growth this year), which is working its way through," Netflix explained in a letter to shareholders. "We continue to focus on improving our service for our members and bringing them the best stories from around the world."
The firm went on to add, "The pandemic has created unusual choppiness in our growth and distorts year-over-year comparisons as acquisition and engagement per member household spiked in the early months of COVID."
Looking ahead, the company forecasts adding another 3.5 million subscribers in Q3, while analysts expected 5.86 million.
"If we achieve our forecast, we will have added more than 54m paid net adds over the past 24 months or 27m on an annualized basis over that time period, which is consistent with our pre-COVID annual rate of net additions," the company said in its earnings release.