Netflix (NASDAQ:NFLX) delivered a strong Q1, beating expectations on both revenue and EPS. This performance was driven by price increases, robust subscription growth, and expanding advertising revenue.
While the company no longer reports quarterly subscriber numbers, it shared that its total audience now exceeds 700 million, with two-thirds located outside the U.S. The ad-supported tier continues to gain traction across all regions, accounting for 55% of new sign-ups. Management expressed optimism about the in-house ad tech platform launched in April, which is expected to offer greater functionality and transparency for both advertisers and Netflix. The company is also continuing to build out its new content formats, including live programming, podcasts, and integrated gaming which have already seen encouraging early engagement.
Netflix noted that it has not observed any meaningful changes in subscriber behavior despite the current economic uncertainty. Management reiterated that historically, Netflix has demonstrated resilience during economic downturns, and they believe that trend continues supported by its ad-support tier.
For more details, key highlights, and commentary, check out the high-level earnings summary.
