Following Netflix's (NASDAQ:NFLX) mixed Q2 earnings report, the company's shares experienced a decline of over 8% yesterday.

While the EPS of $3.29 surpassed the Street estimate of $2.84, the revenue of $8.19 billion fell short of the expected $8.27 billion. The 3% year-over-year growth in revenue was driven by a 6% increase in average paid membership, but the Average Revenue per Membership (ARM) declined by 3% compared to the previous year.

In Q2, Netflix successfully expanded paid sharing to more than 100 countries, covering over 80% of its total revenue, resulting in the addition of 5.9 million paid net subscribers. This exceeded market expectations of around 4 million net subscriber additions.

Looking ahead, Netflix's management anticipates a growth acceleration in revenue during the second half of 2023, as the company begins to reap the full benefits of paid sharing and experiences consistent growth in its ad-supported plan. For Q3, Netflix projects revenue of $8.5 billion, reflecting a 7% year-over-year increase.