Netflix’s revenue rose 22.2% YoY in the first quarter
Video streaming giant Netflix (NFLX) announced its first-quarter earnings results after the closing bell on April 16.
The company’s revenue rose 22.2% YoY (year-over-year) to $4.52 billion in the quarter, beating Wall Street’s consensus expectation of $4.5 billion. This result marked the fourth straight quarter of slowing growth for Netflix, which caused its stock to fall ~3% in after-hours trading on April 16.
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The company’s revenue rose 27.4% YoY in the fourth quarter of 2018 and 33.9% YoY and 40.4% YoY, respectively, in the third and second quarters of the year.
Revenue growth is expected to accelerate
Netflix expects to generate $4.93 billion in revenue in the second quarter of 2019, a 26.1% rise YoY. The rise, which would mainly be the result of Netflix’s raising its subscription rates across all its plans in the United States, would break the company’s trend of decelerating revenue growth.
The company posted $344.0 million in net income in the quarter, a rise of 18.6% YoY. On a diluted basis, it made $0.76 per share. Netflix’s earnings are likely to remain subdued as it continues to spend billions of dollars on content to rope in and retain subscribers.
The company noted in its shareholder letter that it was facing more competition, with “world class consumer brands” such as Apple and the Walt Disney Company (DIS) recently unveiling their video streaming services, which will be launched later this year. Netflix stock fell nearly 5% last week after Disney unveiled its $6.99-per-month service, Disney+. Disney stock rose over 11% on April 12.