Streaming juggernaut Netflix released its first earnings report that was absent any hard numbers on the amount of global subscribers it won or lost during a three-month period — but the company still had plenty of good things to tout on Thursday.
The streamer earned more than $10.54 billion in revenue during the first three months of the year, up 12.5 percent when compared to the first financial quarter (Q1) of 2024. On a sequential basis, its global revenue was nearly 3 percent higher compared to the last three months of last year (Q4 2024).
Net income clocked in at nearly $2.9 billion, up nearly 24 percent on a year-over basis and 54 percent higher when compared to Q4 2024.
While Netflix did not release subscriber figures, the company attributed its revenue bump to stronger membership growth, as well as higher pricing in some of its markets. The company announced a price adjustment across its service plans in January, with customers paying between $1 per month and $2.50 per month more to watch its catalog of shows and movies. (Subscribers who pay to watch Netflix content with ads saw the smallest price increase.)
Customers apparently shrugged off the price adjustment — at this point, long-term Netflix subscribers have come to expect a cost increase about once per year — with subscribers apparently viewing Netflix as having significant value.
The company said its teen-focused police procedural “Adolescence” and three new series — “Back in Action,” “Ad Vitam” and “Counterattack” — were well-received by streamers. Netflix also began streaming “WWE Raw” on a weekly basis, and it has entered into the company’s top 10 list every week since its debut.
“We are working hard to improve and expand our entertainment offering with the goal to build the most valued entertainment company for members, creators and shareholders,” Netflix said in a statement.
Looking ahead, Netflix expects a 15 percent bump in global revenue growth during the second quarter (Q2) of the year “as we see the full quarter benefit from recent price changes and continued growth in membership and advertising revenue.”
Executives cautioned that the forecast is accurate when delivered, but could be affected by internal and external circumstances, including a downturn in the advertising economy effectuated by tariffs, trade wars and other geopolitical issues.
Despite this, Netflix said it expects full-year advertising revenue to “roughly” double in 2025. That, coupled with higher subscription pricing and continued subscriber growth, should give the company an opportunity to earn between $43.5 billion and $44.5 billion by the end of December.
While Netflix has long been a cornerstone streaming service in the U.S., the company is embracing its position as a global producer and distributor of content, and executives said their strategy involves programming for different cultures and tastes accordingly.
“We have offices around the world with local executives who have deep relationships with the creative and business communities,” Netflix said. “And we have invested in production infrastructure to create high quality series and films.”
“While the majority of our content spend and production infrastructure investment is in the US, we now also spend billions of dollars per year making programming abroad,” the company continued. “And instead of just licensing local titles, we’re now making local shows and films in many countries, commissioned by our local executives, that keep our members happy. And our local slates are improving each year.”
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