Netflix added 9.3 million subscribers in the quarter ended March 31, reaching 269.6 million worldwide, and outperformed expectations in other key areas in its latest strong financial report.
Revenue and earnings per share both handily exceeded Wall Street forecasts at $9.37 billion and $5.28, respectively. The top line was up 15% from the same quarter in 2023, while EPS came in at nearly double the year-ago period’s $2.88.
In its quarterly letter to shareholders, Netflix said it planned to stop reporting subscriber totals and average revenue per subscriber starting with its first quarter results in 2025.
“In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential,” the letter said. “But now we’re generating very substantial profit and free cash flow (FCF). We are also developing new revenue streams like advertising and our extra member feature, so memberships are just one component of our growth. In addition, as we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact.”
Two years after the company was on its knees, with a subscriber base in decline and competition closing in, Netflix has come roaring back. Its stock has recently topped $600 a share, and many Wall Street analysts have upped their 12-month price targets, with some pegging it at $700 or higher. Just a few quarters after its crossroads, Netflix has emerged the unquestioned leader in streaming, with rivals still reckoning with how to catch up to it.
MORE to come …
