Netflix, Inc.

Good afternoon, and welcome to the Netflix Q1 2025 earnings interview. I'm Spencer Wong, VP of Finance, IR, and Corporate Development. Joining me today are co-CEOs Ted Sarandos and Greg Peters, and CFO Spence Newman. As a reminder, we will be making forward-looking statements, and actual results may vary. We'll now take questions from the analyst community, and we will begin first with our results, outlook, and forecast. And our first question comes from Robert Fishman of Moffitt Nathanson. Robert's question is, the Wall Street Journal report this week discussed Netflix's internal goal of doubling revenue and tripling operating income by 2030. How should investors think about Netflix leaning into more content spending over the next five years?

I'll take this, and thanks, Robert. Look, we have a unique culture, and part of it is this open information operating style, and it has served us very, very well. On rare and very disappointing occasions, our confidential and internal discussions can leak into the press. And while we wouldn't normally comment about leaked internal information, we do want to be extra clear about this. We often have internal meetings and we talk about long-term aspirations, but it's important to note that this is not the same as forecast. Our operating plans is the same as our external forecasting guidance. We don't have a five-year forecast or five-year guidance, but you can assume that we are long-range thinking and that we're working hard every day to build the most loved and valued entertainment company for all of our stakeholders.

and maybe to pivot the conversation to what we're happy to comment on and discuss in detail. We do have big long-term aspirations and those aspirations are really grounded in the potential for growth that we see in the business. Now, we think we got a pretty good business today, over 40 billion in revenue. We've got over 300 million paid households. Those represent an audience of over 700 million individuals. We're leading in streaming view share, but we also think that we're a minority of our addressable market, our potential across any of those measures. So you think about engagement, we're less than 10% of TV hours. From an audience or a connected households perspective, we still got hundreds of millions of folks to sign up. And from a revenue perspective, we're about 6% of consumer spend and ad revenue in the countries we serve in the areas that we serve. We believe we've got plenty of room to grow our engagement, our revenue and our profit. And as Ted said, you know, do that to become the most valued and loved entertainment company for all of our stakeholders.