Netflix exceeded market expectations for the second quarter in a row by adding 9.3 million new customers, bringing the total number of subscribers to nearly 720 million. Despite this positive news, the stock still dropped by more than 4% in post-market trading on Wall Street. Earnings per share for the first quarter were $5.28, up from $2.88 the previous year, and total revenue increased by 14.8% to almost $9.4 billion. The company saw significant growth in its operating profit, which rose by 54% annually to $2.6 billion.
Netflix also saw a 65% increase in advertising revenue for its lower-priced subscription option, which was introduced a year ago. In markets where this option was available, 40% of new signups chose it. The company emphasized its focus on expanding its customer base and building capabilities for advertisers in a letter to shareholders. Netflix highlighted its commitment to providing a wide range of content to satisfy different audience preferences, including TV series, films, and games.
The company expressed its ambition to program on a large scale and provide high-quality content to its subscribers. Despite facing a verification problem with certificates, Netflix’s strong performance in the first quarter demonstrates its ability to attract new customers and generate revenue growth.