The company reported revenues of US$5.77 billion [AUS$9.11 billion], earnings per share of US$1.57, and 15.77 million new subscribers.
According to CNBC, the company noted that the jump in subscriber numbers was directly attributed to the coronavirus pandemic which compelled people to stay in their homes.
In the same letter, the company also mentioned how the coronavirus crisis continues to impact its business:
Sports such as the National Basketball Association (NBA) and National Hockey League (NHL) have suspended their seasons due to the ongoing coronavirus pandemic.
This has reportedly caused a surge in cord-cutting, where subscribers cancel subscriptions to multiple channels in favor of other options, such as streaming services.
With the subscriptions in streaming sites doubling primarily due to home quarantine, Ben Silverman, CEO and chairman of production company Propagate, commented on the lack of sporting events, telling CNBC:
“The longer that we don’t have sports, the more accelerating the cord-cutting will be […] I think the sports was what was having people hold on to their traditional packages, and without it they’re discovering a lot of entertainment choices in streaming and at lower costs.”
Silverman also added that reruns will dry up a certain point as subscribers may have to wait longer for new shows to come out because of production delays.
However, according to Netflix CEO Reed Hastings, the sudden surge in “viewership and subscriber growth” is likely temporary. The numbers are expected to slow down once the coronavirus restrictions are lifted.
Aside from Netflix, many other companies reported significant movements in their stocks. These include the following:
On the other hand, there were also stocks in extended trading hours that did not respond well mostly based on its first-quarter earnings report:
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