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April 20 , 2021 Fellow shareholders , Revenue grew 24 % year over year and was in line with our beginning of quarter forecast , while operating profit and margin reached all - time highs . We finished Q1'21 with 208m paid memberships , up 14 % year over year , but below our guidance forecast of 210m paid memberships . We believe paid membership growth slowed due to the big Covid - 19 pull forward in 2020 and a lighter content slate in the first half of this year , due to Covid - 19 production delays . We continue to anticipate a strong second half with the return of new seasons of some of our biggest hits and an exciting film lineup . In the short - term , there is some uncertainty from Covid - 19 ; in the long - term , the rise of streaming to replace linear TV around the world is the clear trend in entertainment . Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 ( in millions except per share data ) Q2'21 Forecast Revenue $ 5,768 $ 6,148 $ Y / Y % Growth 27.6 % 24.9 % Operating Income $ 958 $ 1,358 $ 6,436 $ 22.7 % 1,315 $ 6,644 $ 21.5 % 7,163 $ 7,302 24.2 % 18.8 % 954 $ 1,960 $ 1,865 Operating Margin 16.6 % 22.1 % 20.4 % 14.4 % 27.4 % 25.5 % Net Income $ 709 $ 720 $ 790 $ 542 $ 1,707 $ 1,441 Diluted EPS $ 1.57 $ 1.59 $ 1.74 $ 1.19 $ 3.75 $ 3.16 Global Streaming Paid Memberships 182.86 192.95 195.15 203.66 207.64 208.64 Y / Y % Growth 22.8 % 27.3 % 23.3 % 21.9 % 13.6 % 8.1 % Global Streaming Paid Net Additions 15.77 10.09 2.20 8.51 3.98 1.00 Net cash provided by ( used in ) operating activities Free Cash Flow * Shares ( FD ) SS $ 260 $ 1,041 $ 1,264 $ ( 138 ) $ 777 $ 162 $ 452.5 899 $ 453.9 1,145 $ 455.1 ( 284 ) $ 692 455.3 455.6 Note : Figures are consolidated , including DVD . * Free cash flow represents Net Cash provided by ( used in ) operating activities less purchases of property and equipment and change in other assets . Q1 Results and Q2 Forecast Average revenue per membership¹ rose 6 % year over year , or 5 % , excluding a foreign exchange impact of + $ 80m . Operating income of $ 2 billion vs. $ 958 million more than doubled vs. Q1'20 . This exceeded our guidance forecast primarily due to the timing of content spend . EPS of $ 3.75 vs. $ 1.57 a year ago included a $ 253m non - cash unrealized gain from F / X remeasurement on our Euro denominated debt . The extraordinary events of Covid - 19 led to unprecedented membership growth in 2020 , as it pulled forward growth from 2021 , and delayed production across every region . In turn , we ended 2020 with a bigger membership and revenue base than we would otherwise have had , contributing to record Q1'21 revenues . And since we were still ramping production levels late last year , we had lower content spend in 1 Average revenue per membership ( ARM ) is defined as streaming revenue divided by the average number of streaming paid memberships divided by the number of months in the period . These figures do not include sales taxes or VAT . NETFLIX 1