Investing.com – Netflix reported better-than-expected first-quarter results on Thursday, following impressive first-quarter subscriber growth.
Netflix Inc (NASDAQ:) fell 2% in after-hours trading following the report.
earnings of $5.28 per share on revenue of $9.37 billion, beating estimates of $4.51 on revenue of $9.27 billion.
The profit improvement was driven by stronger-than-expected subscriber growth in the quarter.
Netflix added 9.33 million users, sharply exceeding analysts’ expectations of about 4.8 million net additions.
For the second quarter, the company expects earnings per share of $4.68 on revenue of $9.49 billion, compared to Wall Street estimates of $4.55 on revenue of $9.5 billion.
Looking ahead, the company expects revenue growth of 13% to 15%, with an operating margin of 25%, compared to a previous forecast of 24%.
The company also said it will stop reporting quarterly member numbers and average revenue starting next year with first-quarter 2025 earnings, as it believes revenue and operating margin are its primary performance measures.