Netflix beats by $0.94, reports revs in-line; guides Q2 EPS above consensus, revs above consensus; reaffirms FY25 revs guidance (973.03 +11.40)
- Reports Q1 (Mar) earnings of $6.61 per share, $0.94 better than the FactSet Consensus of $5.67; revenues rose 12.5% year/year to $10.54 bln vs the $10.5 bln FactSet Consensus.
- Operating margin was 32%, well above its 28.2% guidance and 4 pts higher than 1Q24.
- Co delivered a solid slate in Q1 with one series (Adolescence) and three films (Back in Action, Ad Vitam and Counterattack) all breaking into all-time most popular lists.
- On April 1, Co successfully launched ad tech platform in the US and are on track to roll it out in remaining ads countries in the coming months.
- Co is building out live offering with Q1 launch of WWE RAW, which has been on global Top 10 list every week. Also announced Taylor vs. Serrano 3, a historic women's boxing rematch that will stream on July 11, and opted into a second NFL game for Christmas Day 2025.
- Co issues upside guidance for Q2, sees EPS of $7.03 vs. $6.25 FactSet Consensus; sees Q2 revs of $11.035 bln vs. $10.89 bln FactSet Consensus.
- Co reaffirms guidance for FY25, sees FY25 revs of $43.5-44.5 bln vs. $44.25 bln FactSet Consensus.
- Continues to expect operating margins of 29%.
- Co added, "We are off to a good start in 2025. In Q1, revenue and operating income grew 13% and 27% year over year, respectively. Both were ahead of our guidance due to slightly higher subscription and ad revenue and the timing of expenses. We're executing on our 2025 priorities: improving our series and film offering and growing our ads business; further developing newer initiatives like live programming and games; and sustaining healthy revenue and profit growth."