Netflix Earnings Report Includes Return To Profitability
Netflix released its Q2 earnings report today. Domestic streaming revenue was up to $533 million from $507 million the previous quarter. International streaming revenue was up to $65 million from $43 million the previous quarter.
Domestic DVD revenue was down to $291 million from $320 million the previous quarter, and global revenue was up to $889 million from $870 million the previous quarter.
In a letter to shareholders from CEO Reed Hastings and CFO David Wells, the company says, “In Q2, we achieved financial performance in the top half of our guidance in nearly every metric, and have returned to profitability.”
The company says it has 24 million domestic streaming members, and is in 10% of Canadian households after 22 months in that country. Netflix recently surpassed a million members in the Latin America region. After six months in the UK and Ireland, Netflix also has a million members in that region.
“We believe we have pulled ahead of LOVEFiLM in every important streaming-related metric,” the letter says. “Going forward, competing effectively with Sky is our core and substantial challenge.”
Netflix says it expects to be profitable again in Q3, and in Q4 will launch its next international market, which will drive it temporarily back into the red.