Netflix has reported its first-quarter revenue of $10.54 billion, reflecting a 12.5% increase compared to the same period last year.
The company reported a net income of $2.9 billion, with earning per share at $6.61. Netflix is now targeting $11.04 billion in revenue for the second quarter.
The streaming giant stated, “We are off to a good start in 2025. In Q1, revenue and operating income grew 13% and 27% year over year, respectively. Both were ahead of our guidance due to slightly higher subscription and ad revenue and the timing of expenses.”
“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,” it added.
“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. 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 streaming platform mentioned.
“We continue to forecast 2025 revenue of $43.5B-$44.5B, which assumes healthy member growth, higher subscription pricing and a rough doubling of our ad revenue, partially offset by F/X net of hedging. We’re still targeting a 29% operating margin for 2025 based on F/X rates as of January 1, 2025,” Netflix mentioned.
Furthermore, it stated that a key focus in 2025 is enhancing its capabilities for advertisers. It successfully rolled out the Netflix Ads Suite, its in-house first party ad tech platform, in the US on April 1.
“In the coming months we will launch the Netflix Ads Suite in our remaining ads markets. We believe our ad tech platform is foundational to our long term ads strategy. Over time, it will enable us to offer better measurement, enhanced targeting, innovative ad formats and expanded programmatic capabilities,” it said.
“In Q1, we launched programmatic in EMEA, and now offer programmatic capability in UCAN, EMEA and LATAM, with a full APAC launch coming in Q2. Additionally, we continue to build out our infrastructure and invest in resources that will help to better serve our ads clients,” it added.
