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Netflix (NASDAQ:NFLX) just dropped a monster Q1 report that blew past expectations. Revenue surged 13% to $10.54 billionbeating the Streetand EPS came in at $6.61, nearly a full dollar above forecasts. The real kicker? It's the first quarter Netflix intentionally skipped reporting subscriber growth. Instead, management made it crystal clear: the company is done chasing user count headlines and is now all-in on cold, hard revenue. After hiking prices across all plans earlier this year, co-CEOs Ted Sarandos and Greg Peters are steering Netflix toward richer unit economics and stronger bottom-line results.
Behind the scenes, Netflix is laying the groundwork for its next act: advertising. In early April, the company rolled out its own ad tech platform in the U.S., with global expansion lined up next. Think better targeting, slicker formats, and eventually, programmatic scaling. Management described the tech as foundational to its long-term vision. In other words, this isn't a side hustleit's core to Netflix 2.0. With media stocks wobbling from geopolitical noise and Trump-era tariffs back in play, Netflix is showing rare resilience. While others panic, it's building.
On the earnings call, Peters didn't mince words: We haven't seen any major impacts. The company reaffirmed full-year revenue guidance of $43.5 to $44.5 billion and said consumer behavior hasn't flinchedeven in a shaky economy. Investors took the hint. Shares are up 3.4% at 8am in the premarket trading, as Wall Street digested the message: Netflix isn't just surviving the macro stormit's outmaneuvering it.
This article first appeared on GuruFocus.