Netflix posts revenue growth of 25% YoY, quarterly operating income exceeds $1B in Q2 '20
The OTT giant has added a Q2 record of 10.1 million paid memberships, going beyond its 7.5 million forecast
OTT giant Netflix has posted its Q2 earnings for 2020, posting revenue growth of 24.9% YoY in the quarter. The total revenue in Q2'20 stands at $6.148 billion. The operating income stands at $1.3 billion. The average streaming paid members in the quarter rose 25% YoY and streaming ARPU grew 0.4%.
"Excluding a -$289m impact from foreign exchange (F/X), streaming ARPU grew 5% year over year. Operating margin expanded 770 basis points year over year to 22.1%, above our guidance forecast due to higher than expected membership and revenue growth. In addition, content and marketing expenses were lower than we expected, as the pandemic delayed some planned spend," wrote Netflix in its communication to shareholders.
Netflix added a Q2 record of 10.1m paid memberships versus 2.7 million in last year's Q2. In the first half of the year, the company added 26 million paid membership, which is close to the 28 million they achieved in all of 2019. But despite the encouraging signs, Netflix stated that growth is slowing down.
"For the full year 2020, we’re still targeting a 16% operating margin. We’re currently on track to exceed 16% although F/X (and the relative strength of the US dollar) remains a wildcard. As always, our intention is to grow our annual operating margin year over year - we’re currently targeting 19% for 2021," the company stated.
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