Streaming giant Netflix reported a 13.4% increase to $US12.56 billion in revenue in the June quarter, just below analyst expectations and moderating from 16.2% in the previous quarter.
The result was driven by membership growth, pricing and increased advertising revenue.
Overall, Netflix expects revenue growth of 12% in the current September quarter and full year of 13% to 14% to $51 billion to $51.4 billion.
The company said it was on track to deliver about $3 billion in advertising revenue in 2026.
“We continue to invest in developing a premium ad experience which delivers highly engaged and attentive audiences to advertisers,” Netflix said in a letter to shareholders.
In the June quarter, Netflix expanded AI-powered tools across the advertising lifecycle, from planning and creative production to campaign management, optimisation and reporting.
"We're also automating more of the workflow around how advertisers transact with us by extending programmatic access to Pause Ads," Netflix said in a letter to shareholders.
“This reduces the manual effort that has historically limited access for smaller buyers, opening Netflix to a broader range of advertisers over time.
“These investments enhance the value of our existing inventory and lay the groundwork for the next phase of growth in our ads business.
“Building out our ads business continues to be a top priority.
“Our US upfront negotiations are in advanced stages, and we expect commitments to close in the next few weeks.
“We are seeing strong interest in our Live events line-up — Women's World Cup, an expanded NFL slate, WWE, MLB events and more — alongside continued demand for our unparalleled breadth of entertainment titles.
“The growth in our ads business is being fuelled by the strength and variety of our slate combined with our investments in AI powered tools and workflows, the Netflix Ads Suite and broader programmatic capabilities.”
June quarter results and September quarter forecasts:
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