Netflix Inc (NFLX.O) averted its own worst-case scenario of subscriber losses, posting a nearly 1 million drop; from April through June, and predicted it would return to customer growth during the third quarter.
Shares, which have fallen roughly 67% this year on concerns about the company’s long-term prospects; rose 8% in after-hours trading following the results.
The world’s largest streaming service said it plans to launch its ad-supported option next year.
Hastings credited new episodes of the science-fiction series “Stranger Things,” the most-watched; English-language show in Netflix history, with helping to stave off more defections.
Netflix forecast customer additions for July through September to hit 1 million.
Shares of other streaming companies rose slightly after the Netflix report.
After years of red-hot growth, Netflix’s fortunes changed as rivals including Disney; Warner Bros Discovery and Apple Inc (AAPL.O) invested heavily in their own streaming services.
Netflix lost 1.3 million customers in the United States and Canada in the second quarter, and 770,000 in Europe, the Middle East and Africa. That was offset by a gain of nearly 1.1 million members in the Asia/Pacific region.
For April through June, earnings per share came in at $3.20, ahead of the Wall Street consensus of $2.94.
Netflix said the strong U.S. dollar hit revenue, which grew 9% to $7.97 billion, below analyst estimates of $8.04 billion. Revenue would have increased by 13% without the foreign exchange impact, the company said.