Netflix reported impressive Q1 2024 earnings, with a significant increase in subscribers and earnings that beat top and bottom line estimates. The company’s net revenue rose 16.5% from a year ago to $9.37 billion, surpassing the expected $9.28 billion. Net income for the first quarter was $2.33 billion, or $5.28 per share, versus $1.30 billion, or $2.88 per share, in the prior-year period.
The total number of memberships reached 269.6 million, exceeding the expected 264.21 million. This represents a 16% jump in subscribers. The company is transitioning from targeting subscriber growth to focusing on profit, as it uses price hikes, a crackdown on password sharing, and an ad-supported tier to boost revenue.
Investors are looking for signs that these efforts are still boosting Netflix and seeking more details about the company’s foray into video games. Netflix could also provide more insight into its partnership with TKO Group Holdings to bring WWE to the platform. The company has teased that it would like to expand its live sports offerings.
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