Believe it or not, earnings season for Q2 is just around the corner. Streaming-TV company Netflix (NFLX -0.75%), which is always one of the first major growth stocks to report earnings each quarter, has set a date for its second-quarter earnings release that is less than two weeks out -- on July 16.

The company set the bar high for its second-quarter results when it announced its first-quarter performance earlier this year. Not only did Netflix add a record 15.8 million new subscribers during the period, but it also guided for 7.5 million subscriber additions in Q2 -- a figure that's far ahead of the 2.7 million new members the company added in the second quarter of 2019. Many investors are likely hoping the momentum Netflix saw from consumers sheltering at home toward the end of Q1 will carry over into Q2.

As we head into Netflix's second-quarter update, here's some important background information to keep investors informed.

A red couch facing a TV in a home theater.

Image source: Getty Images.

Subscriber growth is key

Netflix's membership growth saw a huge uptick in Q1 due to home confinement. The 15.8 million subscribers the company added were more than double the 7 million new members management had forecast it would add during the period. Outperformance during the quarter, of course, was primarily due to lockdown orders implemented in many countries beginning in March.

In Q2, investors will look for more strong member growth as lockdowns were still in effect when Q2 started. Though management guided for 7.5 million new subscriber additions during the period, many investors are likely hoping actual net new member additions will be higher since many economies around the world haven't fully reopened.

Of course, investors should also check on the company's guidance for subscriber growth in Q3. To keep up its accelerated subscriber growth, Netflix will need to guide for more than 6.8 million new members during the period -- the amount of subscribers it added in the third quarter of 2019.

Expectations are high

Based on Netflix stock's recent performance, investors are likely expecting a stellar quarter from the streaming-TV juggernaut. Shares are up nearly 50% year to date, crushing the S&P 500's 3% decline over this same time frame. This gives the company a price-to-sales-ratio of 10 and a price-to-earnings ratio of 97, highlighting the substantial growth investors have priced into the stock.

Netflix is among the stay-at-home stocks that look exceptionally well-positioned to benefit from the unique environment created by the coronavirus pandemic. It's not surprising, therefore, to see investors bid up shares, as they hope the company can capitalize on a timely opportunity to gain new subscribers.

Netflix reports its second-quarter results on Thursday, July 16 after market close.