Netflix Inc (NASDAQ:NFLX) stock rose 1.19% (As on April 18, 7:59:12 AM UTC-4, Source: Google Finance) after the company delivered first quarter earnings that beat expectations on both the top and bottom lines and also reiterated full-year revenue guidance. Net income for the period was $2.89 billion, up from $2.33 billion, during the same quarter a year earlier. In late January, the company increased its pricing across the board, raising its standard plan to $17.99 a month, its ad-supported plan to $7.99, and its premium plan to $24.99. Netflix has been leaning on advertising as it seeks to soften slowing subscriber growth. “A key focus in 2025 is enhancing the capabilities for advertisers,” it said. The company launched its in-house ad tech platform in early April in the U.S., with plans to extend into other markets in the coming months. The report marks the first time the streaming giant did not disclose quarterly subscriber data, as it shifts its strategy to focus on revenue and other financial metrics as performance indicators.
Moreover, the company is building out the live offering with the Q1 launch of WWE RAW, which has been on the global Top 10 list every week. We also announced Taylor vs. Serrano 3, a historic women’s boxing rematch that will stream on July 11, and opted into a second NFL game for Christmas Day 2025. The company has delivered a solid slate in Q1 with one series (Adolescence) and three films (Back in Action, Ad Vitam and Counterattack) all breaking into the all-time most popular lists.
NFLX in the first quarter of FY25 has reported the adjusted earnings per share of $6.61, beating the analysts’ estimates for the adjusted earnings per share of $5.71. The company had reported the adjusted revenue growth of 13 percent to $10.54 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $10.52 billion, as per estimates compiled by LSEG. The streamer attributed its better-than-expected revenue to higher-than-forecast subscription and advertising dollars. Operating income totaled $3.3B, up 27% year over year, and operating margin was 32% vs 28% in Q1’24.
The company guided to revenue for the current quarter above Wall Street expectations, forecasting Q2 revenue of $11.04 billion compared to the $10.88 billion analysts polled by Bloomberg had expected. For full-year 2025, the company reiterated its prior forecast of $43.5 billion to $44.5 billion revenue growth and operating margins of 29%.