Understanding Netflix’s Revenue Trends
Netflix’s (NFLX) revenue grew 2.2% YoY (year-over-year) to $4.52 billion in the first quarter, beating Wall Street’s estimate of $4.50 billion by 0.4%.
![Sophia Nicholson - Author](https://media.marketrealist.com/brand-img/uJEqe19X8/200x200/mr-square-mark-15-1595895139448.png)
Apr. 18 2019, Published 4:03 p.m. ET
![uploads///netflix revenue growth](https://media.marketrealist.com/brand-img/OM7biMbp5/480x251/uploads/2019/04/netflix-revenue-growth-1.png 480w, https://media.marketrealist.com/brand-img/OM7biMbp5/640x335/uploads/2019/04/netflix-revenue-growth-1.png 640w, https://media.marketrealist.com/brand-img/OM7biMbp5/768x402/uploads/2019/04/netflix-revenue-growth-1.png 768w, https://media.marketrealist.com/brand-img/OM7biMbp5/1024x536/uploads/2019/04/netflix-revenue-growth-1.png 1024w, https://media.marketrealist.com/brand-img/OM7biMbp5/1280x670/uploads/2019/04/netflix-revenue-growth-1.png 1280w, https://media.marketrealist.com/brand-img/OM7biMbp5/1440x753/uploads/2019/04/netflix-revenue-growth-1.png 1440w, https://media.marketrealist.com/brand-img/OM7biMbp5/1600x837/uploads/2019/04/netflix-revenue-growth-1.png 1600w, https://media.marketrealist.com/brand-img/OM7biMbp5/2160x1130/uploads/2019/04/netflix-revenue-growth-1.png 2160w)
Netflix’s revenue trends
Netflix’s (NFLX) revenue grew 2.2% YoY (year-over-year) to $4.52 billion in the first quarter, beating Wall Street’s estimate of $4.50 billion by 0.4%. Excluding currency headwinds, Netflix’s revenue grew 28% YoY in Q1 2019.
Although Netflix’s revenue has consistently grown sequentially, its YoY growth has declined for the past four quarters. Analysts’ revenue estimate of $4.928 billion for the second quarter implies they expect YoY growth.
Growth drivers
Consistent and robust global subscriber growth has been a key revenue driver for Netflix. The company added 9.6 million paid subscribers during the first quarter, compared with 8.26 million in Q1 2018 and 8.84 million in Q4 2018. The recent 13%–18% increase in US membership prices is also expected to boost the company’s revenue. Netflix’s basic plan is set to start at $8.99 per month, whereas Walt Disney’s (DIS) upcoming Disney+ streaming service is set to cost a competitive $6.99 per month. AT&T’s (T) WarnerMedia and Apple are also set to launch streaming services later this year, and Comcast’s (CMCSA) NBCUniversal and Discovery (DISCA) plan to launch services next year.