Netflix more than doubled expectations for its Q1 2020 subscriber predictions and substantially exceeded financial growth…
Due to ubiquitous stay-at-home and shelter-in-place orders, streaming is up — way up. So much, Netflix just blew forecasts away for its first quarter performance of 2020. Numbers were predictably higher than estimates, more than doubling projections in new subscriptions, as well as its financial growth.
Netflix Q1 Subscribers Top 15 Million amidst Coronavirus Quarantines
During Q1 2020, Netflix added a whopping 15.8 million new subscribers to its already impressive customer count. And, it grew by over 22 percent in a year-over-year comparison. Now, the streaming service claims 182 subscribers globally, as quarterly revenue hit $5.77 billion, exceeding the $5.76 billion estimated.
However, it’s not all good news. The company issued a letter to shareholders that included a tempering of expectations. It attributed its performance to the short-term circumstances at-hand and cautioned about the future:
“At Netflix, we’re acutely aware that we are fortunate to have a service that is even more meaningful to people confined at home, and which we can operate remotely with minimal disruption in the short to medium term. Like other home entertainment services, we’re seeing temporarily higher viewing and increased membership growth. In our case, this is offset by a sharply stronger US dollar, depressing our international revenue, resulting in revenue-as-forecast.”
In other words, Netflix thinks its first quarter performance is almost entirely due to people having to stay home and indoors. And, such circumstances won’t persist into the remainder of most of the year.