Netflix surpassed market expectations for the second quarter in a row by adding 9.3 million new customers, bringing the total number of subscribers to approximately 720 million. However, despite this positive news, the stock still dropped by over 4% in post-market trading on Wall Street. In the first quarter, earnings per share increased to $5.28 from $2.88 the previous year, and total revenue grew by 14.8% to almost $9.4 billion. Additionally, Netflix experienced significant growth in its operating profit, which rose by 54% annually to $2.6 billion.
Netflix also saw impressive growth in its advertising revenue for its lower-priced subscription option, which was introduced a year ago. In markets where this option was available, 40% of new signups chose it. Netflix emphasized its focus on expanding its customer base and building capabilities for advertisers in a letter to shareholders. The company highlighted its commitment to providing a diverse range of content to satisfy different audience preferences, including TV series, films, and games.
Furthermore, Netflix expressed its ambition to program on a large scale and provide high-quality content to its subscribers despite facing challenges with certificate verification processes. Nevertheless, the strong performance of the company in the first quarter demonstrates its ability to attract new customers and generate revenue growth.
