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Netflix Inc. (NASDAQ:NFLX) has declared that it will no longer disclose quarterly membership data, hinting at a potential deceleration in user growth.
What Happened: The streaming giant added 9.3 million new subscribers in the first quarter, nearly twice the predicted number.
By the end of March, Netflix had a worldwide subscriber base of 269.6 million, marking a year-over-year growth of 16.0%.
However, the company will stop revealing the subscribers tally each quarter from the first quarter of 2025, and instead announce them only when significant milestones are achieved.
Co-CEO Greg Peters stated, “This change is really motivated by wanting to focus on what we see are the key metrics that we think matter most to business.”
“We’ll periodically update when we grow and we hit certain major milestones, we’ll announce those. It’s just not going to be part of our regular reporting,” he added.
Analysts fear that this move could unsettle investors and make it difficult for Wall Street to model the company’s business.
Netflix anticipates revenue of $9.49 billion for the ongoing quarter, slightly below analysts’ expectations of $9.537 billion.
Why It Matters: This decision follows Netflix’s first-quarter earnings report, where the company reported a revenue of $9.37 billion, up 14.8%, beating a Street consensus estimate of $9.275 billion. Netflix added 9.33 million paid subscribers, surpassing expectations.
However, just a week before the earnings report, an analyst from Piper Sandler cautioned about inflated expectations for Netflix’s first-quarter subscriber numbers.
Price Action: Netflix closed Thursday down 0.51% at $610.56 and tumbled over 6% in Friday’s pre-market hours, according to data from Benzinga Pro.
Photo by freestocks on Unsplash
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