Netflix exceeded Wall Street’s quarterly expectations on Thursday evening and provided an optimistic revenue forecast, indicating confidence in its future despite economic growth uncertainties.

The California-based streaming giant, originally launched in 1997 as a DVD rental service, announced that co-founder Reed Hastings has transitioned from his role as executive chairman to the position of non-executive chairman, a change described as a natural step in the evolution of the company’s leadership and succession strategy.

In its first-quarter report, Netflix recorded revenues of $10.54 billion, surpassing analyst predictions which estimated $10.52 billion.

During this quarter, Netflix premiered several popular titles including the limited series *Adolescence*, the six-part drama *Apple Cider Vinegar*, and the reality show *Temptation Island*.

The company anticipates that revenue will grow to $11.04 billion between April and June, exceeding the analyst consensus of $10.9 billion, a projection attributed mainly to membership growth and increased pricing.

Despite concerns from analysts that potential economic policies could lead to a recession prompting consumers to rethink their streaming expenses, Netflix is not expected to experience significant subscriber losses, according to Jessica Reif Ehrlich, a media analyst at Bank of America. However, it is possible that budget-conscious subscribers may opt for lower-priced tiers.

Since the launch of its lower-cost ad-supported tier in 2022, Netflix has seen a surge of new customers signing up for this option, which now constitutes 55 percent of new registrations in markets where it is available.

With over 300 million subscribers worldwide, Netflix remains a leader in the streaming video sector. Earlier this year, the company reported a record addition of 18.9 million subscribers in the fourth quarter of 2024.

Analyzing the situation, Paolo Pescatore, an analyst at PP Foresight, pointed out that maintaining a diverse business model through subscriptions and a gradually increasing ad-supported option will help mitigate risks associated with tighter consumer spending that may lead to cancellations.

“Netflix has become an essential part of many users’ lives, and it is likely to be one of the last subscriptions that people choose to cancel due to its wide range of programming,” he added.

In after-hours trading, shares rose by $41.32 or 4.3 percent, reaching $1,014, which marks nearly a 60 percent increase compared to last year, valuing the company at approximately $417 billion.