After the bell, Netflix will report its earnings. Here's what to anticipate.

• Netflix reports second-quarter earnings after the bell on Thursday.
• According to a survey conducted by LSEG, analysts anticipate EPS of $4.74 and revenue of $9.53 billion.
• Executives will host an earnings call at 4:45 p.m. ET.

Wall Street will closely monitor the advertising-supported business model of the streamer when it reports its second-quarter earnings after the bell on Thursday.

The ad-supported tier of the streaming giant was launched in late 2022, and information about its performance has been gradually disclosed.

Here's what Wall Street expects for Netflix's second-quarter results:

• Earnings per share: $4.74 expected by LSEG
• Revenue: $9.53 billion expected by LSEG
• Total memberships: 274.4 million paid memberships, according to StreetAccount

Media companies are increasingly relying on advertising as a key revenue stream to enhance their profitability, as seen in Netflix's recent success in attracting subscribers through its ad-supported tier and strict password sharing policy.

The company plans to add live sports, including NFL games on Christmas Day, to its streaming service over the next three years, which is expected to increase ad revenue.

At the conclusion of the first quarter, Netflix had approximately 270 million subscribers worldwide, representing a 16% increase from the previous year and exceeding forecasts.

Netflix announced during its May Upfront presentation that its ad-supported tier had gained 40 million global monthly active users, which is almost double the number it previously shared.

Netflix announced that it will stop providing quarterly membership numbers and average revenue per user starting next year, as the company's primary financial metrics are revenue and operating margin, and engagement (time spent) is its best indicator of customer satisfaction.

Netflix's decision to shift from a fast-growing, low-profit business to a slow-growing, high-profit business is highlighted in a recent analyst note from Wedbush. While Netflix has a significant advantage over its competitors in the streaming industry, the pivot is not yet fully complete, according to the note.

"Netflix is shifting its focus from subscription additions to time spent, where its only true rival in size is YouTube. As a result, the company will announce more live events to improve its ad-supported time spent, amid an industry-wide reduction in scripted content production."

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