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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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