Netflix, a leading US-based movie streaming service, has unveiled robust earnings and subscriber numbers for the first quarter of 2024, surpassing market expectations. However, the company has announced changes in its reporting practices, opting to discontinue quarterly disclosures of subscriber numbers and average revenue per user starting from 2025.
In a notable development, Netflix disclosed that its global paying subscribers surged by 16% in Q1/24, reaching 269.6 million, outpacing Wall Street’s projections of 264.2 million.
The company reported an impressive Q1 earnings per share (EPS) of $5.28, exceeding LSEG’s consensus estimate of $4.52, with revenue totaling $9.37 billion, surpassing expectations of $9.28 billion.
Netflix emphasized its strategic shift towards prioritizing profitability over subscriber growth. To achieve this, the company plans to implement measures such as raising service prices, curbing code sharing practices, and exploring the introduction of ad-supported streaming to bolster revenue streams.
Looking ahead, Netflix anticipates a potential slowdown in subscriber growth for the second quarter compared to the first quarter, citing seasonal factors. Additionally, second-quarter revenue is forecasted to reach $9.49 billion, slightly below Wall Street analysts’ expectations of $9.54 billion.
Following the announcement, Netflix shares experienced a 4% decline in after-hours trading on the New York Stock Exchange.