Today, Netflix is sharing its Quarter 1 financial report. According to the report, Netflix has added 15.8 million worldwide subscribers, after projecting an increase of 7 million for the quarter. The number got an added boost from the number of households spending more time at home due to coronavirus. Netflix is ending the period with nearly 183 million subscribers, a 22.8% increase from last year.
“By helping people connect with stories they love, we are able to provide comfort and escape as well as a sense of community during this pandemic. So our focus has been on maintaining the quality of our service while our employees around the world adapt to working from home,” Netflix shared in the report.
Netflix also reported quarterly revenue of $5.77 billion, after estimating $5.76 billion in revenue.
While the numbers are strong, Netflix notes in the letter to shareholders that it will be important to continue keeping the pandemic in mind if those numbers are negatively affected by stay at home orders lifting. “We expect viewing to decline and membership growth to decelerate as home confinement ends, which we hope is soon,” the letter says.
Analysts predicted the uptick in subscribers and revenue, citing coronavirus as a major factor. “We raised our Netflix global subscriber forecasts materially on likely higher gross subscribers and lower subscriber churn boosted by global consumer ‘stay at home’ orders around COVID-19,” Pivotal Research Group analyst Jeff Wlodarczak wrote in a recent report.
We’ll share more updates when Netflix begins their Quarter 1 Earnings Call later today.
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