LOS ANGELES, CA – June 12: CEO of Netflix Ted Sarandos will be taking part in the Netflix Fysee event for “Squid Game” at Raleigh Studios Hollywood on June 12, 2022. (Photo: Charley Gallay/Getty Images on Netflix)
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Netflix It recorded a big revenue beat on Thursday as revenue rose 13% in the first quarter of 2025.
Streamers attribute better revenue than expected to be from existing subscriptions and advertising dollars.
In late January, the company increased its pricing across the board, increasing its standard plan to $17.99 a month, with the ad support plan at $7.99 and the premium plan at $24.99.
This report shows for the first time that the streaming giant did not disclose quarterly subscriber data as it shifts its strategy to focus on revenue and other financial metrics as performance metrics.
Netflix’s revenue comes as traditional media stocks are being criticised by the tumultuous markets spurred by President Donald Trump’s trade policy.
However, Netflix said it continues to forecast annual revenues between $43.5 billion and $44.5 billion.
“There were no significant changes to the overall business outlook,” the company said in a statement Thursday.
As investors worry about the potential impact of tariffs on consumer spending and trust, Netflix co-CEO Greg Peters said in the company’s revenue call, “There’s nothing really important to you based on what you’re actually running your business.”
“We also have the peace of mind that entertainment is quite resilient in historically tough economic conditions. Specifically, Netflix is generally very resilient. Beyond a much shorter history, we have not seen any major impact in these tough times,” Peters said.
Netflix shares won around 3% in extended trading on Thursday.
Company performance is as follows: The quarter ended on March 31st.compare it with estimates compiled by LSEG.
- Earnings per share: $6.61 vs. $5.71 forecast
- Revenue: $10.54 billion vs $10.52 billion
Net income for this period was $2.33 billion, or $5.28 per share, or $28.9 billion, or $6.61 per share, for the same period last year.
First quarter revenues rose nearly 13% year-on-year to $10.54 billion.
Netflix has leaned towards advertising as it seeks to mitigate subscriber growth, saying, “The key focus for 2025 is to boost advertisers’ capabilities.”
The company launched its in-house advertising technology platform in the US in early April, with plans to expand to other markets in the coming months.
“We believe our ad technology platform is the basis of our long-term advertising strategy,” the company said. “Over time, we can provide better measurement, enhanced targeting, innovative advertising formats, and expanded programmatic capabilities.”
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