Netflix closed the first quarter of the year beating market expectations for the second consecutive quarter, as the streaming platform had 9.3 million new customers, almost double the consensus forecast. Total subscribers thus reach almost 720 million. Despite the results, the stock still lost more than 4% in post-market trading on Wall Street. Earnings per share from January to March were $5.28, compared to $2.88 a year earlier. Netflix’s revenue rose 14.8% to nearly $9.4 billion during the period, as it debuted titles such as sci-fi drama series “3 Body Problem” and crime thriller “Griselda.”
Operating profit was $2.6 billion, up 54% annually. Advertising – which has been on the platform for a year now – which offers subscribers a lower-priced option, grew by 65% compared to the last quarter. The company said that in markets where this option was available, 40% of new signups chose it. “Our two priorities in advertising are expanding our customer base and building our capabilities for advertisers,” the company said in a letter to shareholders. “And we made progress on both fronts in the first quarter.”
“No entertainment company has ever programmed on this scale and with this ambition before,” Netflix said in the letter. “To satisfy such a broad audience,” he continued, “we need lots of great stories that appeal to different tastes, from films to TV series to the games our subscribers love. In other words, we take a quality-focused approach. on the public”.