Jamie Spencer
Netflix posted an impressive earnings beat on Thursday, with revenue rising 13% in the first quarter of 2025, marking a successful start to the year for the streaming giant. The company’s revenue exceeded analysts’ expectations, thanks in part to higher-than-forecast subscription and advertising income.
Strong Revenue Growth, Subscription and Ad Revenue Up
The strong performance in the first quarter was fueled by higher subscription fees and a boost in advertising revenue. Netflix raised its pricing in January across several plans. The standard plan now costs $17.99 per month, the ad-supported plan is priced at $7.99, and the premium plan is available for $24.99.
In a strategic shift, Netflix did not disclose its quarterly subscriber data for the first time, choosing to focus on revenue and other financial metrics as the key performance indicators. This move aligns with the company’s evolving strategy to emphasize growth in revenue and advertising as pivotal drivers of success moving forward.
Uncertainty in Media, But Netflix Maintains Confidence
While traditional media stocks have been under pressure, particularly due to the volatility caused by President Trump’s trade policies, Netflix has continued to show resilience. The streaming company has managed to avoid the declines seen in other sectors, maintaining a steady outlook despite broader economic uncertainty.
Greg Peters, Netflix’s co-CEO, acknowledged the concerns surrounding tariffs but emphasized that the company had not seen significant impacts on its operations. “Based on what we are seeing by actually operating the business right now, there’s nothing really significant to note,” Peters said. “Entertainment historically has been pretty resilient in tougher economic times, and Netflix, specifically, has been generally quite resilient.”
Solid Financial Results and Future Outlook
For the quarter ended March 31, Netflix posted earnings per share of $6.61, which exceeded analysts’ expectations of $5.71. The company also reported revenue of $10.54 billion, slightly beating the forecast of $10.52 billion. Net income rose to $2.89 billion, or $6.61 per share, up from $2.33 billion, or $5.28 per share, during the same quarter a year ago.
Focus on Advertising and Future Growth
Netflix continues to focus on bolstering its advertising business as it faces slower subscriber growth. The company has been ramping up its advertising capabilities, launching an in-house ad tech platform in the U.S. in April, with plans to expand to other markets soon. “We believe our ad tech platform is foundational to our long-term ads strategy,” the company said in a statement. The platform will enable better measurement, enhanced targeting, innovative ad formats, and expanded programmatic capabilities.
Outlook for the Year
Despite the ongoing uncertainty in the broader market, Netflix remains optimistic about its full-year revenue projections, forecasting between $43.5 billion and $44.5 billion for 2025. The company is confident that its focus on advertising and steady growth in subscriptions will continue to drive strong financial results.
