Netflix Inc. (NASDAQ: NFLX) reported its financial results for the quarter ended March 31, 2020 today.
Netflix posted a 106% jump in earnings for the first quarter of 2020 helped by strong growth in subscriptions. There were increases in average revenue per user and average streaming paid memberships during the quarter. The company faces risks in the streaming space due to the entry of new players in the field.
The main focus lies in original content and increasing its investments in original content could give Netflix an edge over the rivals. For the second quarter of 2020, Netflix expects revenue to grow by 22.8% year-over-year to $6.05 billion and earnings of $1.81 per share.
The company expects the viewership to decline and membership growth to decelerate as home confinement ends, which is expected soon. The COVID-19 global pandemic has demonstrated the importance of a strong Internet like never before. The company believes that certain of the lockdown growth will turn out to be pull-forward from the multi-year organic growth trend, resulting in slower growth after the lockdown is lifted country-by-country.