Netflix Inc (NASDAQ:NFLX) stock fell 8.07% (As on April 19, 11:15:07 AM UTC-4, Source: Google Finance) after the company beat quarterly earnings and revenue estimates. The company will no longer provide quarterly membership numbers or average revenue per user starting next year. Total memberships rose 16% in the first quarter, reaching 269.6 million, well above the 264.2 million Wall Street had expected. Netflix said now that it is generating substantial profit and free cash flow — as well as developing new revenue streams like advertising and a password-sharing crackdown — its membership numbers are not the only factor in the company’s growth. It said the metric lost significance after it started to offer multiple price points for memberships. The company said it would still announce “major subscriber milestones as we cross them.” Netflix reported first-quarter net income of $2.33 billion versus $1.30 billion, in the prior-year period.

NFLX in the first quarter of FY 24 has reported the adjusted earnings per share of $5.28, beating the analysts’ estimates for the adjusted earnings per share of $4.52, as expected by LSEG. The company had reported the adjusted revenue growth of 15 percent to $9.37 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $9.28 billion. ARM rose 1% year over year, or 4% on a F/X neutral 2 basis. Operating income in Q1’24 totaled $2.6B (vs. $1.7B in Q1‘23), a year over year increase of 54%. Operating margin of 28% grew seven percentage points year over year (vs. 21% last Q1).

The company expects paid net additions to be lower in the second quarter compared to the first quarter “due to typical seasonality.” Its second-quarter revenue forecast of $9.49 billion was just shy of Wall Street’s estimate of $9.54 billion. For Q2’24, the company forecast revenue growth of 16%. This equates to 21% growth on a F/X neutral basis due primarily to price changes in Argentina and the devaluation of the local currency relative to the US dollar. The company forecast global ARM to be up year-over-year on a F/X neutral basis in Q2. For the full year 2024, the company expects healthy revenue growth of 13% to 15%, based on F/X rates at the end of Q1’24. The company now expect FY24 operating margin of 25%, based on F/X rates as of January 1, 2024, up from the prior forecast of 24%.