Netflix is set to announce its earnings for the first quarter this Thursday, following the market’s close.
This report will be significant, as it represents the first instance where the streaming leader will not provide quarterly subscriber figures. Instead, the company is pivoting its focus toward revenue growth and other financial indicators as key metrics of its performance.
Netflix’s upcoming earnings coincide with a challenging environment for traditional media companies, whose stocks have felt the impact of a volatile market influenced by President Donald Trump’s trade policies.
In stark contrast, Netflix has managed to navigate the financial turbulence with relative ease. The company’s stock has seen an increase of 4.5% over the past month, while competitors such as Paramount, Warner Bros. Discovery, Disney, and Comcast have seen their share prices decline.
Investors will be keen to hear insights from Netflix’s executives regarding potential challenges ahead, particularly how changes in consumer spending might affect subscription rates and user churn.
Wall Street has set its expectations for Netflix’s latest quarter as follows:
- Earnings per share: $5.71, as per LSEG
- Revenue: $10.51 billion, according to LSEG
Additionally, analysts are eager for more information on the company’s advertising-supported business model.
In its previous earnings call, Netflix revealed that its budget-friendly ad-supported tiers constituted over 55% of new sign-ups in markets where the service is available. The company noted that membership for these plans surged approximately 30% from the previous quarter.
Executives have indicated intentions to continue expanding the advertising segment, while also enhancing its core offerings with more original series and films, alongside improvements to the user experience. Furthermore, Netflix is expected to explore opportunities within the live event market.
This is a breaking news story. Please check back for updates.
