From CNBC: 2024-04-18 17:05:14

Netflix will no longer provide quarterly membership numbers or average revenue per user starting next year. Total memberships rose 16% in the quarter, reaching 269.6 million, beating expectations. The company plans to focus on revenue, operating margin, and engagement as growth indicators, with paid net additions in the second quarter expected to be lower. Shares of Netflix fell 3% in extended trading after reporting earnings that beat expectations.

In the first quarter, Netflix reported earnings per share of $5.28 vs. $4.52 expected, revenue of $9.37 billion vs. $9.28 billion expected, and total memberships of 269.6 million vs. 264.2 million expected. The company is shifting from subscriber growth to profit focus, utilizing price hikes and new revenue streams like advertising and a password sharing crackdown. Investors are looking for signs of continued growth and details on the company’s video game pursuits.

Netflix’s stock has grown 27% year-to-date and 85% over the last 12 months as it tries to broaden its offerings to increase its share of TV viewing. The company is partnering with TKO Group Holdings to stream WWE and may expand into live sports offerings. Investors are closely monitoring Netflix’s revenue growth strategies amid evolving consumer preferences for entertainment.



Read more at CNBC: Netflix (NFLX) earnings Q1 2024