Core Insights - Netflix reported a strong earnings performance for the first quarter, with revenue of $10.54 billion, slightly exceeding analyst expectations of $10.5 billion [1] - The company achieved an operating income of $3.3 billion, surpassing Bloomberg's estimate of $3 billion, and earnings per share of $6.61, significantly above the expected $5.68 [2] - Netflix's stock rose by 3% in after-hours trading following the earnings announcement [2] Subscriber Metrics and Changes - Netflix has stopped providing specific quarterly subscription numbers, shifting focus to ad sales and content plans for performance evaluation [3] - The company has seen an increase in new subscribers, attributed to new policies aimed at reducing password sharing, encouraging users to pay for their own accounts [2] Advertising and Market Strategy - Netflix is expanding its advertising efforts, having launched its ad tech platform on April 1, with plans to roll it out in additional countries soon [4] - Analysts are monitoring the impact of external factors, such as trade tensions, on Netflix's performance in international markets [4] Growth Aspirations - Netflix aims for a market capitalization of $1 trillion by 2030, indicating ambitious growth plans [5] - The company's stock has outperformed broader market indexes and major tech stocks this year, suggesting strong investor confidence [5] - Analysts believe that viewership may increase if the US enters a recession, as consumers may turn to Netflix for entertainment [5]

Core Insights - Netflix exceeded Wall Street's expectations for the first quarter, reporting total revenue of $10.543 billion and earnings per share of $6.61, surpassing analyst forecasts of $5.66 EPS and $10.5 billion in revenue [1] Financial Performance - Revenue growth in the U.S. and Canada slowed to 9%, down from 15% in the previous quarter, attributed to a partial impact from a price change and the absence of advertising revenue from NFL games [3] - The company anticipates a re-acceleration of revenue growth in the U.S. and Canada for the April-to-June quarter [3] Subscriber Metrics - Netflix is no longer reporting subscriber numbers quarterly but plans to share select data during significant milestones; the last reported figure was 303 million global subscribers [2] Industry Context - The earnings report comes amid a challenging economic environment influenced by fluctuating tariffs, with analysts viewing Netflix as one of the least vulnerable companies in the media sector due to its service-based model [4] - Netflix's advertising business, which is relatively new, is expected to be less affected by a downturn in advertising compared to other media and tech companies [4] Programming Highlights - The first quarter saw the success of the series "Adolescence," which quickly became one of the most-streamed series in Netflix's history, with a sequel in development [5] - WWE Raw debuted on Netflix, enhancing its live weekly offerings following a multi-million dollar rights deal [5] Challenges - The film "Electric State," which cost at least $275 million, received poor reviews and garnered only 25.2 million views shortly after its release, underperforming compared to other Netflix films [6]

Exhibit 99.1 April 17, 2025 Fellow shareholders, | (in millions except per share data) | | Q1'24 | | Q2'24 | | Q3'24 | | Q4'24 | | Q1'25 | | Q2'25 Forecast | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Revenue | $ | 9,370 | $ | 9,559 | $ | 9,825 | $ | 10,247 | $ | 10,543 | $ | 11,035 | | Y/Y % Growth | | 14.8 % | | 16.8 % | | 15.0 % | | 16.0 % | | 12.5 % | | 15.4 % | | Operating Income | $ | 2,633 | $ | 2,603 | $ | 2,909 | $ | 2,273 | $ | 3,347 | $ | 3,675 | | Operating ...

ToplineNetflix will report its first-quarter earnings results Thursday afternoon, a report which analysts expect will show the streaming giant’s best quarter ever by several metrics, setting the stakes for Netflix stock moving forward after it emerged as a perhaps surprising stock market safe haven during the recent slump.Netflix co-CEO Ted Sarandos attends a Netflix premiere in February.Getty Images for Netflix Key FactsIn its Q1 due shortly after 4 p.m. EDT market close, Netflix is expected to report its ...

Group 1 - Netflix Inc is experiencing gains while other major tech companies are struggling, with a 1.22% increase over the past month, 8.45% year-to-date, and 56.70% over the past year [1][2] - In contrast, other companies in the Enormous Eight, such as Tesla, Apple, and Alphabet, have seen significant declines, with Tesla down over 36% YTD and Apple down over 20% [2][3] - The technical indicators for Netflix show strong bullish momentum, with the stock above its eight, 20, 50, and 200-day simple moving averages, and oscillators indicating it is neither overbought nor oversold [4] Group 2 - The S&P 500 is down 10% YTD and over 7% for the month, highlighting Netflix's performance as a standout in a challenging market [5] - Netflix's ability to deliver positive performance amidst a broader tech correction suggests a potential shift in market dynamics from streaming wars to stock market prominence [5]

Core Viewpoint - Netflix is expected to report strong earnings, continuing its momentum as a leading growth stock, driven by a tariff-resistant business model, high-margin content distribution, and pricing power [1][17]. Group 1: Tariff-Resistant Business Model - Netflix's stock has shown resilience, with an 8.8% year-to-date increase, outperforming the broader market [2]. - The company generates approximately 60% of its revenue in currencies other than the U.S. dollar, highlighting its international growth potential [4]. - Revenue growth in the U.S. and Canada was only 6.9%, while international segments like Asia Pacific saw an 18.5% increase, indicating the importance of expanding international memberships [4][5]. Group 2: High-Margin Content Distribution - Netflix's strategy involves balancing the quantity and quality of its content, which has led to successful subscriber retention [6][8]. - The company has effectively produced high-quality content, attracting viewers through major events and new series [7][10]. - The international success of shows like "Squid Games" demonstrates Netflix's ability to create hits that resonate globally, enhancing its revenue potential [11][12]. Group 3: Pricing Power - Netflix has consistently increased subscription prices, with the latest hike resulting in over 55% of sign-ups coming from ad-supported plans [13][15]. - The focus on ad revenue may lower average revenue per subscriber but can enhance overall content utilization and profitability [14]. - The company is guiding for a revenue of $10.416 billion for the first quarter of fiscal 2025, reflecting an 11.2% year-over-year increase, alongside an operating margin of 28.2% [15][16].

Group 1: Netflix, Inc. (NFLX) - Netflix's shares have outperformed the Zacks Broadcast Radio and Television industry over the past year, increasing by 58.1% compared to the industry's 45.8% [4] - The company is benefiting from a growing subscriber base, with about two hours of viewing per member per day, indicating strong member retention [4] - The launch of a first-party ad tech platform in Canada and other countries in 2025 is expected to double ad revenues year-over-year, with raised revenue guidance for 2025 between $43.5 billion and $44.5 billion [5] Group 2: SAP SE (SAP) - SAP's shares have outperformed the Zacks Computer - Software industry over the past year, increasing by 46.4% compared to a decline of 2.9% in the industry [7] - The company is experiencing growth due to rising cloud demand, particularly from its Rise with SAP and Grow with SAP solutions [7] - SAP's revised 2025 outlook expects cloud and software sales in the range of €33.1 billion to €33.6 billion, up from a previous forecast of €29.83 billion [9] Group 3: Shell plc (SHEL) - Shell's shares have declined by 8.1% over the past year, while the Zacks Oil and Gas - Integrated - International industry saw a decline of 12.7% [10] - The company faces challenges in its Renewable segment and has a sub-100% reserve replacement ratio, indicating difficulties in replenishing produced energy [10] - Despite these challenges, Shell remains a global leader in liquefied natural gas, leveraging its strong LNG position to generate consistent earnings [11] Group 4: Preformed Line Products Co. (PLPC) - Preformed Line Products has outperformed the Zacks Electronics - Miscellaneous Products industry over the past year, increasing by 13.8% compared to a decline of 50.3% in the industry [13] - The company has a robust balance sheet with $57.2 million in cash and $56.2 million in free cash flow, supporting liquidity and potential M&A [13] - Global diversification offsets U.S. market weakness, with strong growth in EMEA, Asia-Pacific, and The Americas [14] Group 5: ImmuCell Corp. (ICCC) - ImmuCell shares have outperformed the Zacks Medical - Products industry over the past six months, increasing by 48.7% compared to a decline of 5.7% in the industry [16] - The company is experiencing strong operational recovery, with fourth quarter and full-year 2024 product sales rising by 52% year-over-year [16] - Gross margin improved to 36.5% in the fourth quarter, and EBITDA turned positive at $1.1 million for the year [17]

Core Viewpoint - Netflix is expected to report its Q1 earnings amid market volatility, with a focus on revenue growth and operating margins, while not disclosing subscriber numbers [2][3] Financial Performance - Netflix anticipates an 11.2% revenue increase in Q1 year-over-year, with full-year guidance projecting 12% to 14% growth, estimating revenues between $43.5 billion and $44.5 billion, an increase of $500 million from previous projections [3] - For the full year, Netflix aims for an operating margin of 29%, up from 28%, and a Q1 operating margin of 28.2%, with a net income of $2.44 billion and EPS of $5.58 [4] - The company has delivered a positive trailing four-quarter earnings surprise of 7.2%, indicating potential for achieving anticipated earnings growth [4] Market Position and Resilience - Despite market turmoil from tariff pressures, Netflix's stock has remained stable, gaining 4.6% month-to-date, while the Broadcast Radio and Television industry declined by 5.2% [5] - Economic downturns may increase consumer value on television, benefiting Netflix as it prepares for new show releases to drive subscriber growth [6] Strategic Goals - Netflix aims to reach a $1 trillion market capitalization by 2030, planning to double revenues from $39 billion last year and generate nearly $9 billion in global ad sales [8] - The subscriber base is projected to grow to around 410 million by 2030, with strategies to expand in markets like India and Brazil through new policies and affordable ad-supported subscriptions [9] Analyst Sentiment - Brokers have raised Netflix's average short-term price target by 15.8% to $1,078.77, with the highest target set at $1,494, indicating a potential upside of 60.4% [12] - Management's optimism regarding improved quarterly results and full-year guidance is expected to encourage stakeholders to remain invested [11]

While competitors struggle, Netflix trades near all-time highs with even greater gains planned for the next five years. Here's what you should watch for in Thursday evening's Q1 report.Media-streaming innovator Netflix (NFLX -1.40%) has been swimming against the broader market currents recently. Industry giants such as Walt Disney and Comcast are trading closer to their yearly lows than to 52-week highs. But Netflix is hovering just below a recently notched record price, posting robust gains in the last wee ...

Core Viewpoint - Netflix will no longer disclose subscriber figures in its earnings report, shifting focus to metrics like user engagement and revenue, which it believes better reflect its business health as it matures [1] Group 1: Earnings Expectations - Analysts anticipate a modest first quarter for Netflix following a strong fourth quarter, primarily due to a weaker content lineup [2] - Wall Street is uncertain about what metrics Netflix will disclose, focusing instead on financial health and margin expansion [2] Group 2: Advertising Strategy - Analysts are keen to hear details about Netflix's ad rollout, which is expected to double ad revenue this year after a 150% increase in ad commitments during last year's upfronts [3] - The importance of revenue growth from advertising is emphasized, with expectations for significant profits due to operating leverage from cost management [4] - Economic uncertainties, including tariffs, may impact Netflix's advertising business, raising concerns about its pricing power in a challenging macroeconomic environment [5][7] Group 3: Ad Technology and Market Position - Netflix has developed in-house ad technology and is transitioning away from Microsoft’s Xandr, with analysts looking for updates on attracting new advertisers [8] - Since launching its ad tier in 2022, Netflix has seen rapid growth, reaching 70 million global users by November, with over 55% of new sign-ups in ad-supported regions [9] Group 4: Content Strategy and Market Competition - Analysts are interested in Netflix's plans for sports programming and creator-driven content strategies to compete with YouTube [10] - The potential for monetization through creator-led content and the use of AI tools for efficiency and personalization is highlighted [10] Group 5: Password Sharing and User Growth - There is curiosity about the timeline for Netflix's password sharing crackdown to yield significant benefits, with expectations for continued growth from ad-supported users [11]