Netflix's latest 10-Q report for the quarter ended March 31, 2025, provides a detailed insight into the company's financial performance and operations. Here are some key highlights from the report:
Financial Results: Revenues for the quarter ended March 31, 2025, were $10.54 billion, representing a 13% increase compared to the same period in 2024. Operating income for the quarter was $3.35 billion, up 27% from the prior year, leading to an operating margin of 31.7%. * Net income for the quarter was $2.89 billion, a 24% increase from the previous year.
Revenue by Region: The United States and Canada (UCAN) contributed $4.62 billion in revenues, up 9% from the same period in 2024. Europe, Middle East, and Africa (EMEA) generated $3.40 billion in revenues, marking a 15% increase year-over-year. * Latin America (LATAM) and Asia-Pacific (APAC) also saw revenue growth of 8% and 23% respectively compared to the prior year.
Constant Currency Revenue: * Netflix also provided constant currency revenue information, which excludes the impact of foreign currency rate fluctuations on revenue. Constant currency revenues for the quarter were $10.85 billion, representing a 16% increase compared to the prior year.
Cost of Revenues: * The cost of revenues for the quarter was $5.26 billion, representing a 6% increase from the same period in 2024. This increase was primarily driven by a $152 million rise in content amortization relating to existing and new content.
Sales and Marketing: * Sales and marketing expenses totaled $688 million for the quarter, up 5% year-over-year. The increase was primarily due to higher personnel-related costs and expenses related to the company's advertising offering.
Technology and Development: * Technology and development expenses amounted to $822 million, marking a 17% increase from the prior year. The rise was primarily attributed to higher personnel-related costs.
General and Administrative: * General and administrative expenses were $421 million, up 4% from the same period in 2024. The increase was primarily driven by higher third-party expenses.
Interest Expense: * Interest expense for the quarter was $184 million, representing a 6% increase compared to the prior year due to the rise in debt.
Interest and Other Income (Expense): * Interest and other income (expense) for the quarter was $50.9 million, significantly lower than the $155.4 million reported in the same period in 2024.
The 10-Q report provides a comprehensive overview of Netflix's financial performance, highlighting revenue growth across its key regions and the factors contributing to changes in expenses and income. The market has reacted to these announcements by moving the company's shares 1.2% to a price of $973.03. For the full picture, make sure to review Netflix's 10-Q report.
