Netflix reports strong subscriber gains but Q2 revenue forecast disappoints
Netflix (NFLX) reported first quarter earnings that beat across the board on Thursday with another 9 million-plus subscribers added in the quarter. However, disappointing second quarter revenue guidance dragged the stock more than 3% lower in after-hours trading.
Subscriber additions of 9.3 million beat expectations of 4.8 million and follows the 13 million net additions the streamer added in the fourth quarter. The company had added 1.7 million paying users in Q1 2023.
Notably, the company said it will stop reporting quarterly membership numbers starting next year, along with average revenue per member, or ARM.
"As we’ve evolved our pricing and plans from a single to multiple tiers with different price points depending on the country, each incremental paid membership has a very different business impact," the company said.
Revenue beat Bloomberg consensus estimates of $9.27 billion to hit $9.37 billion in the quarter, an increase of 14.8% compared to the same period last year, as the streamer leaned on revenue initiatives like its crackdown on password sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.
