Netflix reported on Thursday, April 17, that its first-quarter earnings exceeded Wall Street estimates, driven by a recent price increase and strong global programming, including the success of the British series "Adolescence." Earnings rose 25 percent to $6.61 per share, surpassing analysts' projections of $5.68. Sales grew 13 percent to reach $10.5 billion.
This is the first time the company has not disclosed the number of customers gained or lost, which used to be the main indicator used by investors to assess its performance. Although lower subscriber growth was anticipated, Netflix is looking to expand by selling advertising and raising prices for its plans to maximize its current customers.
Anticipating a 2025 where an inevitable slowdown in growth was projected, Netflix has managed to surpass market expectations by increasing its operating income by 27 percent, reaching $3.3 billion. Projections for the current quarter include sales of $11 billion and earnings of $7.03 per share, both above Wall Street forecasts.
Closing 2024 with its best quarter in history, Netflix added 18.9 million customers, and its operating margin of 31.7 percent exceeded its own predictions. The company’s shares rose 2.2 percent to $994.41, marking a 9.2 percent increase year-to-date.
Netflix has evolved from a company that used to spend large amounts of cash to finance its programming slate, to one that generates billions of dollars in profits and cash flow. It is currently implementing advertising technology in specific markets and plans to raise its rates in certain regions.
Netflix's performance has been based on the quality of its original programming, which has recently included the premiere of the successful series "The Night Agent" and "WWE Raw." The company has highlighted its investment in international programming, specifically in the UK and Mexico, where films like "Counterattack" have become popular Netflix hits.
