Netflix (NFLX) reported Q1 earnings Thursday of $5.28 per diluted share, up from $2.88 a year earlier. Analysts polled by Capital IQ expected $4.53. Revenue in the quarter ended March 31 was $9.37 billion, up from $8.16 billion a year earlier. Analysts surveyed by Capital IQ expected $9.28 billion. The company said it expects Q2 diluted EPS of $4.68 on revenue of $9.49 billion. Analysts polled by Capital IQ expect EPS of $4.55 on revenue of $9.53 billion. The company shares were down nearly 3% in recent after-hours activity.

Netflix is hoping customers see its advertising-supported subscription tier as still better than cable. Co-CEO Greg Peters says in a video with 1Q earnings that greater awareness of the quality of the company’s ad experience should help boost subscriptions. He says that the linear TV ad experience is still “quite poor” in many places around the world. He also mentions low price and tools like integrated payments as drivers of growth for the ad tier. Ads membership grew 65% sequentially in 1Q, keeping pace with the quarter-on-quarter changes in the previous two reporting periods. Netflix shares are down 3.9% to $587.22 after-hours.

Netflix showed that its password-sharing crackdown continues to bear fruit, delivering its strongest first-quarter customer additions since the pandemic and further strengthening its position as the dominant global streamer. The company added 9.33 million subscribers in the first quarter, more than five times the number of customers it added during the same period a year earlier, with its efforts to limit password sharing continuing to bear fruit. Netflix began limiting password sharing in earnest about a year ago. Netflix has spent the last year rolling out that initiative, working to expand its ad business and changing its line-up of prices and plans to better position itself for the future. The company plans to stop providing investors quarterly membership numbers and the average revenue generated per member early next year because it now has multiple pricing tiers in a variety of markets. Netflix said it would add annual revenue guidance. Netflix

The following is a summary of the Netflix, Inc. (NFLX) Q1 2024 Earnings Call Transcript: Financial Performance: Netflix expects healthy double-digit revenue growth for the full year, with Q1 indicating a 15% increase. It forecasts its operating profit margin to increase to 25% in 2024, up from 21% last year. The company projects Q2 paid net additions to be lower than Q1. The expansion of its paid sharing and advertising businesses is facilitating multiple revenue streams. Its ad offering has grown by about 65%, quarter-to-quarter, in the last three consecutive quarters. Business Progress: Netflix is diversifying its revenue model, focusing on advertising and additional member features. The operationalization of pay sharing work has contributed to revenue conversion. Netflix plans to further expand into advertising, aiming to increase its base of paid members and audience for advertisers. The company aims to boost engagement by continuously improving its services and concentrating on