With almost everybody stuck at home because of the COVID-19 pandemic, Netflix was widely anticipated to do well in Q1 of 2020 — however it did even better than anticipated.
Before the present disaster, Netflix had predicted 7 million net new paid subscribers for its just-released earnings. With the dramatically changed landscape, growth was going to beat the estimation, but Q1 came in at more than double expectations, with 15.77 million paid net additions. That brings Netflix’s whole paid subscriber tally to 182.86 million.
In the meantime, the company additionally reported revenue of $5.77 billion and earnings per share of $1.57 — roughly in line with Wall Road predictions on income and slightly behind EPS predictions of $1.65.
For now, Netflix is treating this growth as a short-term spike, with viewing and progress declining as “progress against the virus will permit governments to raise the home confinement soon.” So it’s forecasting a mere 7.5 million global internet additions in Q2.
As for the way the global halt to film and TV production would possibly affect the service’s content material plans, the company says there’ll solely be a “modest” influence in the second quarter, mostly in language dubbing. This quarter may also see the launch of just-introduced acquisitions like the Kumail Nanjiani-Issa Rae comedy “The Lovebirds” and the Millie Bobby Brown mystery “Enola Holmes,” in addition to new shows like “Space Force” and “Hollywood.”