Netflix on Thursday reported another blowout quarter, soundly beating expected revenue performance with $10.5 billion in Q1 although growth decelerated to 12.5% year-over-year. But the streamer forecasts $11.04 billion in Q2 revenue, up 15.4% year-over-year.
Quarterly operating income, meanwhile, spiked 27% to $3.35 billion.
Speaking to equity analysts, however, Netflix Co-CEO Ted Sarandos downplayed a recent leak of internal discussions indicating long-term ambitions to grow the company’s market capitalization to $1 trillion, bump annual revenue to nearly $80 billion and yearly operating income to $30 billion, all by 2030. These lofty goals were reported on Monday by the Wall Street Journal.
Citing Netflix’s “unique culture” and “open information operating style,” Sarandos said Netflix has a lot of internal meetings in which a lot of things are discussed, “but this is not the same as a forecast.” He called the leak “disappointing.”
Q1 2025 marked the first Netflix earnings report in which subscriber metrics weren’t disclosed.
Among the few dour numbers to appear in the streaming company’s financials was the 9% quarterly revenue growth metric in the United States and Canada for the period, which was markedly down from 2024 quarters, and 15% versus Q4 specifically.
Also on Thursday’s call, Netflix CFO Spencer Neumann said the drop was the result of “tough comparables,” noting that the twin NFL Christmas Day games that also brought in a large advertising bounty that the company wasn’t able to match in the first three months of 0225.
On that note, Netflix revealed that it has picked up the option to once again stream two more NFL regular season games this upcoming Christmas. The company said it also expects to double its advertising revenue this year, in part because of the launch of its own ad server, which has been deployed in the U.S. and Canada, and will soon roll out in the other 10 countries in which Netflix sells commercial time.
“This is a big milestone for us,” said Netflix Co-CEO Greg Peters, noting that controlling its own ad server allows its clients “greater flexibility, more ways to buy, and just make it easier to transact with Netflix.”
Meanwhile, with UK production officials recently suggesting a levy on foreign streaming services amid President Donald Trump’s global trade war, Sarandos made it a priority Thursday to talk up the accretive presence of Netflix in not only the UK, but in Mexico and Korea, as well.
“When we produce in these countries, we provide employment support and training, we work with local talent and production workers, and with local cultural officials. We even add to tourism,” Sarandos said.
With Trump’s tariffs widely assumed to lead to recession, Netflix executives were also asked if they’re seeing any early indicators from customers of an economic downturn.
“We’re paying close attention to the customer sentiment and where the economy is moving. But based on what we’re seeing, there’s nothing really to note,” Peters said.