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Netflix surpassed Wall Street’s expectations for quarterly results, offering a bullish revenue perspective on Thursday, signaling trust amidst the economic uncertainty surrounding President Donald Trump’s volatile tariff plans.
The company’s shares remained roughly flat at $970.10 in trading outside of business hours.
The streaming giant also said co-founder Reid Hastings has left his post as chairman of the board and has become “part of the natural evolution of our leadership structure and succession planning” to become the non-executive chair of the board.
Netflix has 70 million monthly active users with ad-supported plans
Netflix co-founder Reed Hastings has chaired the board and became the non-executive chair of the board. (Michael M. Santiago / Getty Images / Getty Images)
According to data compiled by LSEG, Netflix reported revenue of $10.54 billion in the first quarter to $10.54 billion, stealing historical analyst estimates of $10.52 billion.
The diluted share profit of $6.61 exceeded the consensus estimate of $5.71. During the quarter, the company released hits including the limited series “Youth”, the drama thriller “Zero Day” and the unscripted series “Isle of Temptation.”
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| NFLX | Netflix Inc. | 973.03 | +11.40 |
+1.19% |
Looking ahead, the company is projected to have revenues rise to $11.04 billion between April and June, exceeding the analyst consensus of $10.9 billion, and was “driven primarily by membership growth and pricing.”
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Analysts have increased the likelihood that Trump’s economic policies will lead to a recession where consumers rethink streaming spending.
Netflix reported revenue of $10.54 billion in the first quarter, snatching an estimated $10.52 billion from past analysts. (Nikos Pekiaridis/Nurphoto via Getty Images/Getty Images)
However, Netflix is unlikely to watch “A Wave of Churn” given its strong market position and popular content, writes Jessica Reif Ehrlich, media analyst at Bank of America, but some cost-conscious subscribers may trade with a lower price tier.
Consumers have flocked to the ad-supported group on Netflix, which was released in late 2022. Netflix said this version of the service accounts for 55% of new signups in countries where it is available.
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Netflix dominates the streaming video market with over 300 million global subscribers. In January, the company reported that it had added a record 18.9 million subscribers in the fourth quarter of 2024.
In the quarter, Netflix declined to disclose subscriber numbers to highlight other performance metrics such as revenue and profit. Analysts say they believe changes will show slower growth for future subscribers.
