Netflix beats subscriber targets

Netflix blew past Wall Street expectations on new customers for the second straight quarter on Thursday but signalled the positive surprises could be over, forecasting revenue growth slightly below analyst targets.

Shares of the streaming video pioneer initially rose about 3 per cent in extended trading after the results but then reversed course to fall 4 per cent to $586.50.

The company said its adsupported streaming plans helped bring in 9.3 million new customers, nearly double the consensus forecast of analysts polled by LSEG.

For the current quarter, Netflix projected revenue of $9.49billion compared with analyst expectations of $9.537b. Earnings per share for January through March came in at $5.28, compared with $2.88 a year earlier.

Netflix revenue rose 14.8 per cent to nearly $9.4b during the period, when the service debuted titles such as sci- drama series 3 Body Problem and crime thriller Griselda.

Operating income totaled $2.6b, a year-overyear increase of 54 per cent. Analysts had expected Netflix to add roughly 5m subscribers around the world during the quarter, according to LSEG data, after record gains at the end of 2023.

The additions brought Netflix's total subscribers to 269.6m at the end of March. Executives have urged investors to focus on revenue and operating margins as key nancial metrics rather than subscribers.

Netflix said it will stop reporting subscriber additions each quarter starting with the rst quarter of 2025, and instead will announce them only when major milestones are reached.

Analysts said the decision would likely rankle investors.