Netflix's Q1 2025 – Revenue Up 13%, Operating Income Up 27%

By Bobby Samwell • Monday, April 21 06:01 • Permanent Link

Netflix's latest 10-Q reveals a strong financial performance for the three months ended March 31, 2025. The company reported revenues of $10.54 billion, a 13% increase from the same period in 2024. The operating income also saw significant growth, reaching $3.35 billion, up 27% from the previous year. Net income for the quarter stood at $2.89 billion, marking a 24% increase.

The company's operating margin for the quarter increased by approximately four percentage points compared to the prior year, primarily driven by revenue growth outpacing the increase in cost of revenues, sales and marketing, and general and administrative expenses.

Netflix's revenue growth was fueled by an increase in memberships and higher pricing, although it was partially offset by unfavorable changes in foreign exchange rates, net of hedging.

Regionally, the United States and Canada (UCAN) contributed $4.62 billion in revenue, a 9% increase from the prior year. Europe, Middle East, and Africa (EMEA) saw a 15% growth, generating $3.40 billion in revenue. Latin America (LATAM) and Asia-Pacific (APAC) also experienced revenue growth of 8% and 23%, respectively.

The company's cost of revenues increased by $286 million, primarily due to a $152 million rise in content amortization related to existing and new content.

Sales and marketing expenses grew by 5%, primarily driven by increased personnel-related costs and expenses associated with the company's advertising offering.

Technology and development expenses saw a significant uptick, increasing by 17% due to a rise in personnel-related costs.

General and administrative expenses increased by 4%, primarily due to higher third-party expenses.

Interest expense grew by 6% as a result of an increase in debt, reaching $184 million for the quarter.

Interest and other income (expense) declined by $104 million, mainly due to a decrease in foreign exchange gains and losses on foreign currency denominated balances and derivative instruments.

Today the company's shares have moved 1.2% to a price of $973.03. If you want to know more, read the company's complete 10-Q report here.

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