Netflix Crushes Q1, Says It's 'Working Hard To Improve And Expand' Its Offering

Streaming giant Netflix Inc NFLX reported first-quarter financial results after market close Thursday.

Here are the key highlights.

What Happened: Netflix reported first-quarter revenue of $10.54 billion, up 12.5% year-over-year. The revenue total beat a Street consensus estimate of $10.52 billion according to data from Benzinga Pro.

The company reported earnings per share of $6.61, beating a Street consensus estimate of $5.74.

Revenue and operating income came in ahead of company guidance, according to the company. Netflix said higher subscription and advertising revenue and the timing of expenses contributed to the guidance beat.

Here are the revenue figures by region and their year-over-year change:

UCAN: $4.62 billion, +9%
EMEA: $3.41 billion, +15%
LATAM: $1.26 billion, +8%
APAC: $1.26 billion, 23%

Netflix did not break out subscriber growth or total subscriber figures as it previously disclosed it would stop doing on a quarterly basis.

"We're executing on our 2025 priorities: improving our series and film offering and growing our ads business; further developing newer initiatives like live programming and games; and sustaining healthy revenue and profit growth," the company said.

WWE RAW on Netflix launched in the first quarter and the company said the content has been on its top 10 global list every week. Other content highlighted from the first quarter included "Adolescence," "Back in Action" and "Counterattack."

Netflix announced that Reed Hastings transitioned from executive chairman to chairman of the board and a non-executive director.

What's Next: Netflix is guiding for second-quarter revenue to be $11.04 billion, which would be up 15.4% year-over-year. Earnings per share for the second quarter is $6.61. The company maintained its full-year revenue guidance of $43.5 billion to $44.5 billion.

The company said its live event strategy remains unchanged and highlighted an upcoming boxing match on July 11, as well as the addition of a second NFL game on Christmas Day in 2025, which it opted into.

Netflix also highlighted the upcoming third season of "Squid Game," its most popular series ever. The season will debut on June 27, 2025. Netflix also said its game "Squid Game: Unleashed" based on the series has been one of its biggest games to date and will have new content based on the third season.

"We remain optimistic about our 2025 slate with a lineup that includes returning favorites, series finales, new discoveries and unexpected surprises designed to thrill our members," the company said.

Netflix said it launched it ad tech platform in the US on April 1 and is on track to roll out the platform to other countries in the coming months.

"We are working hard to improve and expand our entertainment offering with the goal to build the most valued entertainment company for members, creators and shareholders."

NFLX Price Action: Netflix stock is up 4.5% to $1,016.82 in after-hours trading versus a 52-week trading range of $542.01 to $1,064.50.

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