Netflix's password sharing crackdown is paying off as earnings beat Wall Street expectations

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Netflix on Thursday released its first quarter earnings, which topped analyst estimates in terms of subscriber additions and profit.

Netflix's victory lap as the leader in streaming continued on Thursday, as the company said it increased its subscriber base by 9.3 million to nearly 270 million in the first quarter. Revenue was up 15% to $9.37 billion in the first quarter, the Los Gatos, Calif. streamer reported. Net income was $2.3 billion , compared to $938 million in the same period in 2023. The company beat Wall Street's estimates on revenue, subscriber additions and net income, according to FactSet.

While many analysts are bullish on Netflix's prospects, some note that the company has limits to how much it can grow in the United States and Canada, where many households already subscribe to the platform. The streamer will also need to look to continue its pipeline of popular shows, as some of its series with large fan bases such as 'Stranger Things' and 'Cobra Kai' are approaching their final seasons.

 

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