Netflix reported its first quarterly earnings without disclosing subscriber numbers, instead focusing on revenue and operating income. The company generated $10.5 billion in revenue, with a 31.7% margin, significantly higher than the same period last year.
Reed Hastings, Netflix’s founder and executive chairman, will step down as co-CEO to become chairman and non-executive director of the company. The change comes amid a shift in focus towards growth potential beyond subscriber numbers.
The company reported strong performance, beating Wall Street expectations. Price hikes, including an increase on its ad-supported plan, likely contributed to bolstered margins. Netflix expects revenue to grow by 15% in Q2 and has plans to roll out further price increases across markets.
Although the company will no longer release subscriber numbers, it aims to continue tracking key metrics such as time spent viewing content. The decision comes amid market uncertainty, with concerns over tariffs and recession fears.
In its shareholder letter, Netflix emphasized its focus on international growth and live event programming. The company plans to expand its strategy of acquiring major events like NFL games and boxing matches, which will be made available in various countries. It also announced plans for more creator content, including video podcasts and deals with high-quality creators.
Source: https://www.hollywoodreporter.com/business/business-news/netflix-q1-2025-earnings-1236193857