Netflix Q2 Fueled By Price, Ads & Squid Game—Q3 Set To Repeat

Core Insights - Netflix reported second-quarter revenue of $11.08 billion, a 16% year-over-year increase, surpassing the consensus estimate of $11.04 billion [1] - The company achieved earnings per share of $7.19, exceeding the consensus estimate of $7.06 [1] - Operating margins reached 34%, benefiting from increased membership, higher pricing, and rising advertising revenue [2] Revenue Growth by Region - UCAN region generated $4.93 billion, up 15% year-over-year, outperforming the 9% growth in the first quarter [8] - EMEA region reported $3.54 billion, an 18% increase [8] - LATAM region saw $1.31 billion, a 9% growth [8] - APAC region also contributed $1.31 billion, with a notable 24% increase [8] Content Performance - The third season of "Squid Game" released in June garnered 122 million views, making it the sixth highest in Netflix's history [3] - Netflix members collectively watched 95 billion hours of content in the first half of the year [3] Future Guidance - For the third quarter, Netflix projects revenue of $11.526 billion, a 17% year-over-year increase, and earnings per share of $6.87, both above Street estimates [4] - The full-year revenue guidance has been raised to a range of $44.8 billion to $45.2 billion, up from a previous range of $43.5 billion to $44.5 billion [4] - Operating margins are expected to be 29.5% for the full year [5] Advertising Revenue Expectations - The company anticipates doubling its advertising revenue for the full year, following successful upfront presentations with advertisers [6]