Investing.com - Netflix reported first-quarter results Thursday that topped Wall Street estimates as subscription price hikes and a jump demand for the streaming giant’s ad-supported tiers helped boost performance.
Netflix (NASDAQ:NFLX) shares rose 3% in afterhours trade following the results.
Netflix announced earnings per share of $6.61, easily beating the consensus of $5.69. Revenue for the quarter rose 13% to $10.54 billion, above the consensus of $10.5 billion. Operating income grew 27% from last year to $3.35 billion.
The streaming giant attributed the better-than-expected results to "slightly higher subscription and ad revenue and the timing of expenses."
For Q2, the company expects revenue growth of 15%, underpinned by recent price changes and continued growth in membership and advertising revenue, with operating margin coming in at 33%, a 6% year-over-year improvement. The company expects EPS for the quarter of $7.03, which is above the consensus of $6.24. Revenue for the current quarter is expected to be $11.04 billion, compared to the consensus of $10.9 billion.
Looking further ahead, the company reiterated its forecast for 2025 revenue of $43.5B to $44.5B and is still targeting a 29% operating margin for 2025. Wall Street had seen revenue for the year of $44.3 billion.
Netflix said it repurchased 3.7 million shares in the quarter for $3.5 billion, the most ever purchased in a quarter.
The company also announced that it is now producing in over 50 countries.
(Frank DeMatteo contributed to this report)