Bloomberg Intelligence senior media analyst Geetha Ranganathan described Netflix's second-quarter earnings as really underwhelming, noting that the company offered no guidance raise on revenue or operating margin despite a low bar. Revenue guidance for the third quarter came in at about 11.7%, well below the 13% consensus estimate, while operating margin guidance remained at 31.5%. Ranganathan also highlighted concerns over engagement trends, pointing to Nielsen data showing Netflix's share of TV viewing time at just under 8%, its lowest level in about 10 months, and a slowdown from the mid-teens engagement growth reported a few quarters ago. She questioned whether management has articulated a clear plan to reinvigorate the business.
Netflix IncQ2 earnings underwhelming, no guidance raise, Q3 revenue guidance below consensus, operating margin guidance unchanged.