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Jun 30, 2021
Netflix Q2 2021 Earnings Report
Revenue increased, operating income rose, and paid memberships finished ahead of forecast.
Key Takeaways
Netflix's Q2 2021 earnings showed a 19% increase in revenue year over year, reaching $7.3 billion. Operating income also rose by 36% year over year to $1.8 billion. The company concluded the quarter with over 209 million paid memberships, slightly surpassing their forecast.
Revenue increased 19% year over year to $7.3 billion.
Operating income rose 36% year over year to $1.8 billion.
Finished the quarter with over 209 million paid memberships, slightly ahead of forecast.
APAC region represented about two-thirds of global paid net adds in the quarter.
Netflix
Netflix
Netflix Revenue by Segment
Netflix Revenue by Geographic Location
Revenue by Segment
UCAN Revenue
CapyFin.comEMEA Revenue
CapyFin.comLATAM Revenue
CapyFin.comAPAC Revenue
CapyFin.comRevenue by Geographic Location
UCAN Revenue
CapyFin.comEMEA Revenue
CapyFin.comLATAM Revenue
CapyFin.comAPAC Revenue
CapyFin.com Forward Guidance
For Q3'21, Netflix forecasts revenue of $7.477 billion and paid net additions of 3.5 million.
Positive Outlook
- Forecasts paid net additions of 3.5m vs. 2.2m in the prior year period.
- If forecast is achieved, more than 54m paid net adds will have been added over the past 24 months.
- ARM will grow roughly 5% year over year on a FX neutral basis in Q3’21.
- Targeting a 20% operating margin for the full year 2021 vs. 18% in 2020.
- Optimistic in ability to deliver a strong second half slate.
Challenges Ahead
- COVID and its variants make predicting the future hard.
- Some years will be a little under the average annual three percentage point pace increase in operating margin.
- COVID-related production delays in 2020 have led to a lighter first half of 2021 slate.
- Pandemic has created unusual choppiness in growth and distorts year-over-year comparisons.
- Engagement per member household was down vs. unprecedented levels but was still up 17% compared with a more comparable Q2’19.
Revenue & Expenses
Visualization of income flow from segment revenue to net income