Shares of Netflix (NFLX) jumped 7% in extended trading after the streaming giant reported it lost fewer subscribers than expected.
Netflix lost about 970,000 subscribers during the second quarter, far fewer than the 2 million it had projected it would lose. It also said it expects to gain around 1 million new subscribers in the third quarter.
Revenue came in lower than expected, growing 8.6% to about $8 billion. Net profit at Netflix was $1.4 billion, up 6.5% from a year earlier.
The company also warned of the strengthening U.S. dollar’s impact on its international revenue, which makes up about 60% of its total revenue.
Netflix said it aims to unveil its lower-cost, ad-supported tier in early 2023. That comes on the heels of news that Netflix was tapping Microsoft to be its partner on the ad-supported initiative. The service will “likely start in a handful of markets” where advertising spending is significant.
Netflix shares are down over 66% so far this year. Other streaming stocks like Disney (DIS), Warner Brothers Discovery (WBD), and Paramount Global (PARA) all rose following Netflix’s results.