Were there any surprising numbers that popped out to you while reading Netflix’s Q1 results? Well, I think we expected the jump ever since the lockdown started, but we didn’t know it would be this high.
Today, Netflix shared its Quarter 1 financial report. Personally, that’s the best thing about the streamer––transparency. According to the report, the streaming platform has garnered almost 16 million worldwide subscribers after projecting an increase of 7 million for the quarter. The number got an insane jump as more and more households are spending time in the comfort of their homes due to the lockdown caused by the virus. The streamer saw a 22.8% increase from last year’s numbers, collecting an insane 183 million subscribers to end the period. Insane.
“By helping people connect with stories they love, we are able to provide comfort and escape as well as a sense of community during this pandemic. So our focus has been on maintaining the quality of our service while our employees around the world adapt to working from home,” Netflix shared in the report.
With more than 180 million subscribers to your name, quarterly revenue comes easy. The streamer reportedly garnered $5.77 billion, after an estimated $5.76 billion in revenue.
Though the numbers are strong, the streaming giant notes in the letter to its stakeholders that it will be essential for everyone to keep the pandemic in mind. If orders are lifted, the numbers might get a little shifty. “We expect viewing to decline and membership growth to decelerate as home confinement ends, which we hope is soon,” the letter says.
Analysts predicted the huge rise in subscribers and revenue as a result of the quarantine period. “We raised our Netflix global subscriber forecasts materially on likely higher gross subscribers and lower subscriber churn boosted by global consumer ‘stay at home’ orders around COVID-19,” Pivotal Research Group analyst Jeff Wlodarczak wrote in a recent report.