Netflix ( NFLX ) shares rose in after-hours trading Thursday after the company reported first-quarter earnings that beat expectations on both earnings and revenue, while reaffirming its full-year revenue outlook.
Netflix reported first-quarter revenue of $10.54 billion, up 13% year-over-year and above the $10.50 billion analysts were expecting, according to Bloomberg. The company had expected $10.42 billion.
Earnings per share of $6.61 were also above analysts’ expectations of $5.68. The company had expected first-quarter earnings per share of $5.58, compared with $5.28 per share in the same period last year.
The company expects revenue to be higher than Wall Street expectations for the current quarter, with second-quarter revenue forecast at $11.04 billion, compared with $10.88 billion expected by analysts surveyed by Bloomberg.
For the full year 2025, the company reiterated its previous forecast for revenue growth of $43.5 billion to $44.5 billion and an operating margin of 29%.
The company is currently in one of the best positions among large tech companies in an uncertain economic environment dominated by President Trump’s trade war.
Netflix shares are up 9.2% year to date as of Thursday’s close, a particularly strong performance as large tech companies including Apple (AAPL), Amazon (AMZN) and Alphabet (GOOG, GOOGL) are all down 17% or more year to date. The S&P 500 (^GSPC) is expected to fall about 10% in 2025.
Netflix management said in its earnings report: “We are off to a good start in 2025,” attributing its performance to “slightly higher subscription and advertising revenue.”
Thursday was also the first time Netflix reported without subscriber numbers as the company focuses on increasing user engagement and revenue growth, with an emphasis on expanding its international presence.
The company expects to have 301.6 million subscribers worldwide by the end of 2024. Netflix said in its fourth-quarter shareholder letter that it would disclose subscriber numbers in the future “as we move toward key milestones.” The company added 41 million global subscribers last year.
Netflix has set ambitious financial goals, including doubling revenue and reaching a $1 trillion valuation by 2030, according to the Wall Street Journal. The streaming company is currently valued at just over $400 billion.
During the earnings call, Netflix co-CEO Ted Sarandos directly addressed the WSJ report: “We hold regular internal meetings to discuss our long-term vision. But it’s important to note that this is different than a forecast.”
“Our operating plan is consistent with our external forecasts and guidance,” he continued. “We don’t have a five-year forecast or five-year guidance. But you can be sure that we are thinking long term and working every day to build the most beloved and valuable entertainment company for all of our stakeholders.”
Password-sharing crackdowns have helped boost its subscriber numbers, and while the benefits of those crackdowns are expected to slow in the near term, the company expects its content to drive subscriber growth and its advertising tier to be a long-term catalyst for attracting new users.
Earlier this year, the company raised subscription prices for its streaming plans in the U.S., including its ad-supported plan, which remains one of the cheapest on the market at $7.99 per month.
“Our recent price changes in large markets, including the U.S., the U.K. and Argentina, are in line with our expectations,” Netflix said in its earnings release.
On Thursday, the company announced it would increase prices in France starting today.
Netflix also revealed in a press release that former CEO Reed Hastings has moved from executive chairman to chairman and non-executive director of the company.
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