Netflix’s first quarter performance exceeded market expectations, with the company gaining 9.3 million new customers and reaching a total of nearly 720 million subscribers. Despite this success, the stock still decreased by more than 4% in post-market trading on Wall Street.
Earnings per share for the period were $5.28, up from $2.88 the previous year, and revenue increased by 14.8% to almost $9.4 billion. Operating profit also saw a significant increase, reaching $2.6 billion, up 54% annually. The introduction of new titles like “3 Body Problem” and “Griselda” contributed to this growth, as well as Netflix’s advertising option which saw a 65% increase compared to the previous quarter with 40% of new sign-ups choosing this option.
In a letter to shareholders, Netflix highlighted its focus on expanding its customer base and building capabilities for advertisers. The company emphasized its commitment to quality content that appeals to a diverse audience, including films, TV series, and games. Netflix described its programming as ambitious and on a scale never seen before in the entertainment industry.
Overall, Netflix’s strong performance in the first quarter demonstrates its continued growth and innovation in the streaming market