In the first quarter of the year, Netflix surpassed market expectations by gaining 9.3 million new customers, reaching a total of nearly 720 million subscribers. Despite this success, the company’s stock still decreased by more than 4% in post-market trading on Wall Street. Earnings per share for the period were $5.28, up from $2.88 the previous year, and revenue increased by 14.8% to almost $9.4 billion.
Netflix’s focus on expanding its customer base and building capabilities for advertisers was highlighted in a letter to shareholders. The company emphasized its commitment to quality content that appeals to a diverse audience, including films, TV series, and games. Netflix described its programming as ambitious and on a scale never seen before in the entertainment industry.
The introduction of new titles like “3 Body Problem” and “Griselda” contributed to this growth as did Netflix’s advertising option which offers a lower-priced subscription that saw a 65% increase compared to the previous quarter with 40% of new sign-ups choosing this option. Operating profit also saw a significant increase, reaching $2.6 billion, up 54% annually due to these efforts