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The Netflix shares jumped as much as 4% in trade after hours on Thursday after the company beat Wall Street expectations for its first quarter in 2025.
Revenue increased by $ 12.5% to $ 10.5 billion, driven by higher pricing and higher than given subscription and advertising revenue, whose later company said is “very small.” The company remains on the right track to reach “sufficient scale” with its AD-supported offer 2025.
Here are the best results:
Net profit: $ 2.89 billion, compared with $ 2.33 billion a year ago.
Profit per share: $ 6.61 per share, compared to $ 5.69 per share expected by analysts investigated by Zacks Investment Research.
Income: $ 10.54 billion, an increase of 12.5% year over years, in line with analysts investigated by Zacks Investment Research.
Operating profit: $ 3.35 billion, an increase of 31.7% year over years, compared with $ 2.63 billion a year ago.
The latest revenue information marks Netflix’s first where it no longer breaks out its total subscriber and average income per paid members quarterly when it shifts its focus to revenue, operating margins and commitment. It reported most recently 301.63 million subscribers globally. However, the company said it would continue to outbreak of total revenue per region, as well as the effects of currency changes, and announces large subscriber miles when it crosses them.
Revenue in the United States and Canada increased by 9% from year to year to $ 4.62 billion, due to a partial impact from pricing changes, planning mix and the absence of advertising revenue from their Christmas day’s NFL games. The company expects that income growth in the region will accelerate during the second quarter. At the same time, revenue rose 15% year over the year $ 3.41 billion in Europe, the Middle East and Africa; 8% to 1.26 billion in Latin America; and 23% to $ 1.26 billion in the Asia Still Sea.
Streamer also revealed that CEO Reed Hastings, who founded Netflix in 1997, would transfer the role to become chairman of the board and a non-executive director. In addition, its longest independent board member Tim Haley informed the company that he would not be responsible for re -election.
Resilience in tough economic times
Netflix managers also dealt with economic uncertainty and the global recession fear that President Donald Trump’s customs policy elicited. Although customs do not directly affect television programs and films, it may have an indirect impact on Hollywood in areas such as advertising and consumer expenses.
Co-CEO Greg Peters said that the company is paying close attention to the consumer’s feeling and the broader economy, but that there is “nothing really significant to note” when it comes to the impact for the company. He said that inventory and commitment remain “stable and strong” and that there have been no significant changes in its plan mixture.
“We take some comfort in the fact that entertainment has historically been quite resilient in tougher economic times,” he continued. “Netflix has also generally been quite resistant, and we have not seen any major effects during the tougher times, albeit, of course, during a much shorter story.”
Addition to that resilience, Peters, is “to have the low -cost plan in our largest markets.” With the $ 7.99 advertising -supported interest rate, Peters said that the company expects demand to remain strong. “It’s an accessible price point,” Peters said. He noted that Netflix accounts for about 6% of consumer expenses and advertising revenue in the areas it serves.
“We really trust that our members should notify us when we have invested enough, grown the value in our offer and then decide, based on it, when we adjust the prices to be able to reinvest back in our service,” added Peters. “So we will continue to follow that philosophy and that way, rather than any predetermined plan.”
The collaboration Ted Sarandos acknowledged that Netflix is facing a certain international risk due to taxes and fees around the world, but that it does not change its forecast.
“We produce original content in 50 countries around the world, and we are a net contributor to many of these economies and cultures,” Sarandos added. “We create and support employment, education. We work with local producers and local talents, we help export local stories and local cultures around the world. We even drive tourism. So we believe we are additives to the local economies and the local cultures all over the world where we work, so maybe a little less exposed.”
In advance influence
On the question of possible effects on the advertiser’s spend under the advance, Peters said they see no signs of softness based on direct interactions with buyers.
“We are currently relatively small in advertisements as a revenue contributor to Netflix, but probably even more important, the amount of ad expenses that we are trying to win relative to the big ads. That smallness probably gives us a little isolation to market shifts right now,” he said.
Netflix recently expanded its internal ADTECH platform to the United States on April 1 after a launch in Canada and is about to roll it out in the remaining ten countries where its ad-supported offer is available in the coming months.
“It offers a bunch of new capacities that advertisers have told us that they want. So we are just starting to sell to the new capacities that open new opportunities for us, also opens a new demand for us,” added Peters. “So I would say, based on everything we see right now, we continue to expect that we roughly double our advertising revenues in 2025 through a combination of both programmatic expansion in advance.”
Youtube competition and choral involvement
During the quarter, Netflix proclaimed the release of the series “Adolescence” and movies “Back in action”, “ad vitam” and “Counter attack.” It also continued to expand its Live programming offer with the launch of WWE RAW, which has been on its global top 10 list every week.
Netflix Plans to Stream The Taylor Vs Serrano Women’s Boxing Rematch on July 11 and Opted Into a Second NFL Game for Christmas Day 2025. It Also Touted Upcoming Films Including “Nonnas” Starring Vince Vaughn, Traler Perry’s “Star’s” Starring Taraj “Havoc,“ an action thriller Starring Tom Hardy and Forest Whitaker. The upcoming series will “forever”, a modern day takes on the classic Judy Blume novel, “The Royals”, “The Four Seasons” with Tina Fey, Steve Carell and Colman Domingo, new seasons by “America’s Sweethearts: The Dallas Cowboys Cheerleaders,” “Black Mirror” “” “” “Black Mirror” “” “
“We work hard to improve and expand our entertainment offer with the goal of building the most valued entertainment company for members, creators and shareholders,” the company wrote in its quarterly shareholder letter.
On the question of competition with Youtube, Sarandos said that Net Filex offers “the best revenue model on the planet for premium history.”
“I think we can help these creators reach an audience. Our model can also support more ambitious efforts for them, can help them risk them unlike the type of typical (user -generated content) models,” he continued. “(Ms. Rachel Has) Been in the top 10 every week SEW LAUNCHED ON NETFLIX, KILL Tony Right Now Is Killing It With Our Standup Fans. We’re Working With Sidemen, We Just Launched Pop The Balloon. So We Think It is Realy Exciting WeTh. Premium content, as defined by fans, and the best home for storytellers, wherever they are working on honey their skills today. “
Peters also said that Netflix has more room to improve the discovery and recommendations on the platform to drive commitment. It plans to launch its new website design later this year as well as a new interactive search function based on generative technology. While its supplement an extra member function has also resulted in good stock and commitment, Netflix managers said that it is not an important driving force for the business and is expected to remain “relatively small for the foreseeable future.”
Netflix growth outlook remains stable
In the future, Netflix has maintained its income guidance of $ 43.5 billion to $ 44.5 billion in 2025 and an operating margin of 29%. It expects the content costs to grow during the third and fourth quarters of one year over years.
During the second quarter of 2025, it expects revenue to grow $ 15.4% to $ 11.04 billion as it sees a full quarterly benefit of pricing changes and continued subscriber and advertising income. It also expects a net profit of $ 3.06 billion, profit per share of $ 7.03, and operating income growth of $ 33.3% to $ 3.68 billion and an operating margin of 33%.
In the longer term, the Wall Street Journal recently reported that the company looks at a 1 trillion dollars on market value By 2030. According to the magazine, it aims to double its revenue from $ 39 billion last year and generate approximately $ 9 billion in global advertising sales by 2030, triple income from $ 10 billion last year and grow its subscriber base to about $ 410 million during that time.
Sarandos avoid the report. “We often have internal meetings and we talk about long -term ambitions, but it is important to note that this is not the same as forecast. Our operating plans are the same as our external forecast guidance,” Sarandos said and handled the leak. “We do not have a five -year forecast or five -year guidance, but you can assume that we are long -distance thinking and that we work hard every day to build the most loved and valued entertainment company for all our stakeholders. We have large, long -term ambitions, and these ambitions are really founded in the potential for growth that we see in the company.”
