Netflix beats market predictions with $2.3B profit and subscriber surge

Delhi: Netflix announced significant gains in both profits and subscriber numbers, surpassing market forecasts. In the first quarter of 2024, the company welcomed over nine million new subscribers, boosting its total to 269.6 million.

The profit for Q1 surged to $2.3 billion, with revenues nearing $9.4 billion. This marks a noticeable increase from the previous year, where the company earned $1.3 billion from $8.2 billion in revenue.

This shows that over the past two years, Netflix has experienced significant growth, bolstered by measures to prevent password sharing and the introduction of a more affordable subscription option that includes advertisements.

According to media reports, despite the positive performance, Netflix shares have risen since the start of the year, though investors remain cautious of the company's ability to continually boost revenue and successfully expand its emerging ad-supported tier into a significant revenue stream. 

Ross Benes, Emarketer senior analyst, told media, "Netflix continues to lay the smackdown on its competition.” 

"This signals that password sharing was even more common than previously thought as Netflix keeps converting freeloader viewers into paid users," he added.