Streaming video giant Netflix (NASDAQ: NFLX) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 12.5% year on year to $10.54 billion. The company expects next quarter’s revenue to be around $11.04 billion, slightly above analysts’ estimates. Its GAAP profit of $6.61 per share was 16.8% above analysts’ consensus estimates.

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Netflix (NFLX) Q1 CY2025 Highlights:

Company Overview

Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.

Consumer Subscription

Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to, what movie they watch, or even finding a date, online consumer businesses are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have further increased usage and stickiness of many online consumer services.

Sales Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Netflix grew its sales at a mediocre 9.7% compounded annual growth rate. This wasn’t a great result compared to the rest of the consumer internet sector, but there are still things to like about Netflix.

This quarter, Netflix’s year-on-year revenue growth was 12.5%, and its $10.54 billion of revenue was in line with Wall Street’s estimates. Company management is currently guiding for a 15.4% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 13.7% over the next 12 months, an acceleration versus the last three years. This projection is particularly healthy for a company of its scale and suggests its newer products and services will fuel better top-line performance.

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