“We’re feeling really good about the business,” said co-CEO Ted Sarandos during an analyst call. “We had a plan to re-accelerate growth and we delivered on that plan.”
Despite the positive results, many analysts remain cautious, suggesting that the growth driven by the password-sharing crackdown may be temporary. Concerns have been raised regarding Netflix’s ability to sustain growth without new strategies, as the company has yet to see significant financial returns from its advertising initiatives or investments in video games.
Analyst Dave Heger from Edward Jones told Bloomberg that subscriber growth “does seem like it’s slowing back down.”
Strong content lineup ahead
In its shareholder letter, Netflix projected sales for 2025 would rise between 11% and 13%, potentially reaching as high as $44 billion, driven by both new subscribers and planned price increases. The company announced that it would raise prices in Spain and Italy and phase out a less expensive plan in Brazil.
Notably, nearly all new subscribers during the quarter came from the Europe, the Middle East, and Africa, and the Asia-Pacific regions. However, Netflix experienced its first loss of customers in Latin America since early 2023.
