Netflix delivered stronger-than-expected results for the first quarter of 2025, reporting a 13% year-on-year revenue increase as it continues to shift focus from subscriber numbers to broader financial performance indicators.
The streaming giant posted earnings of $6.61 per share, beating estimates of $5.67, while revenue came in at US$10.54 billion, slightly above market expectations of $10.51 billion.
The company attributed the revenue growth to a combination of increased subscription revenue and higher advertising income. In late January, Netflix implemented a price increase across its plans, raising its standard plan to $17.99, the ad-supported plan to $7.99, and the premium plan to $24.99.
Significantly, this quarter marked the first time Netflix has not disclosed subscriber figures, as part of a broader strategic pivot.
Instead, the company said it will now focus on financial performance metrics, including revenue and operating margin, to better represent its long-term growth.
“There’s been no material change to our overall business outlook,” Netflix said in a statement last Thursday, maintaining its full-year revenue forecast between $43.5 billion and $44.5 billion.
Despite turbulence in traditional media stocks due to U.S. trade policy developments under President Donald Trump, Netflix shares rose about 2% in extended trading following the earnings release.
The company continues to build its advertising capabilities as subscriber growth slows. “A key focus in 2025 is enhancing our capabilities for advertisers,” Netflix said.
In April, it launched its proprietary ad tech platform in the U.S., with plans to expand internationally in the coming months.
“We remain optimistic about our 2025 slate with a lineup that includes returning favourites, series finales, new discoveries and unexpected surprises designed to thrill our members,” the company noted in a press release.
Netflix (NASDAQ: NFLX) stock closed at US$987.91 on Monday, up 1.5% from Thursday's close of $973.03. Netflix's market cap stands at $422.59 billion.
