There may be turmoil in the financial markets, but Netflix continues to roll.
The streaming giant earned $10.5 billion in revenue and nearly $2.9 billion in net income in the first three months of the year, exceeding Wall Street’s forecasts, the company reported Thursday.
The announcement represents the kickoff to media earnings season, which is turning into an even more anxious affair than usual. Many media companies that rely heavily on advertising revenue are preparing for a difficult year ahead as marketers begin to pull back on spending amid uncertainty around tariffs.
Some analysts believe, however, that Netflix is something close to recession-proof, and should be able to weather any economic tumult, a point that the company underscored. The company said in a Thursday letter to shareholders that its “revenue and profit growth outlook remains solid,” and that it is not making any changes to its forecast for the year ahead.
“Netflix will continue to be the default platform, and the last to be cut by the vast majority of users,” said John Conca, an analyst at Third Bridge.
Thursday’s earnings also represented the first time that Netflix didn’t disclose quarterly subscriber figures. The company said last year that it would prioritize other metrics, including time spent on the service, and financial targets like revenue and operating margin. Some industry observers believe Netflix stopped releasing quarterly subscriber updates because it was anticipating slower growth.
Antenna, a subscription research firm, estimated that Netflix lost subscribers in the United States in the first quarter.
Still, Netflix attributed its 12.5 percent growth in revenue both to higher subscription prices and “membership growth.” At the end of 2024, Netflix said that it had roughly 301 million subscribers.
Indeed, in its letter to shareholders, Netflix underscored its ability to create programming that would “appeal directly to local audiences” across the globe.
The company also said it was buoyed by the performance of its out-of-nowhere hit “Adolescence,” which came from its United Kingdom team.
“We believe this steady drumbeat of must-see entertainment is what allows us to capture our members’ attention and, in return, delight them every time they visit Netflix,” the company told shareholders.
John Koblin covers the television industry.
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