shares of Netflix Shares soared more than 14% on Tuesday after the company reported fourth-quarter results that beat revenue and bottom line.
The company added more than 300 million paid members during the quarter, a record increase of 19 million subscribers. Netflix said this growth was driven by its content lineup, product improvements and typical fourth-quarter seasonality.
The company also shared that, including “additional member accounts,” the worldwide audience is estimated to exceed 700 million.
“We built our business on diversity and quality across countries, regions and genres, and we are committed to providing exceptional value to our members,” Ted Sarandos, co-CEO of Netflix, said on an investor call. “We’ve really focused all year on delivering strong programming.”
Here is Netflix’s performance for the most recent quarter ended December 31 compared to Wall Street expectations.
Earnings per share: $4.27 vs. $4.20, according to LSEGR Revenue: $10.25 billion vs. $10.11 billion, according to LSEGR Number of paid members: 301.63 million vs. 290.9 million, according to StreetAccount
Net income for the period was $1.87 billion, or $4.27 per share, compared to $938 million, or $2.11 per share, in the prior-year period.
Fourth-quarter sales rose 16% year-over-year to $10.25 billion, beating Wall Street expectations of $10.11 billion.
Netflix has raised its full-year 2025 revenue guidance to a range of $43.5 billion to $44.5 billion, up from its previous forecast by approximately exceeded the dollar.
As previously announced, Q4 was the last quarter for Netflix to report quarterly paid subscriber numbers. Instead, it will begin reporting bi-annual “Engagement Reports” in parallel with the second and fourth quarter releases.
The streamer on Tuesday touted a successful fourth quarter that included the release of Season 2 of its hit series “Squid Game” and live sporting events such as the record-breaking Jake Paul vs. Mike Tyson boxing match and National Football. . League match on Christmas day.
“We are very happy because some people came for the game and some people came for the game. ” and “Black Doves” and “Six Triple Eight”… Nate Bargatze’s new comedy special,” Sarandos said. “All of those things worked really well in the quarter and continued to do so in the days and weeks after the game.
“And what’s really most encouraging is that the retention behavior of the people who attended these events is very similar to the people who attended for all the other big titles,” he said.
The company said it plans to improve its core business with more series and movies this year, enhance its product experience and continue to grow its advertising business. Netflix is expected to move further into the live event space and gaming.
The company also plans to bring back two of its biggest hits, “Strangers Things” and “Wednesday,” for 2025. In addition, the streamer plans to release a collection of new movies from top directors and actors, including the third film from Daniel Craig and Rian Johnson. The movie “Knives Out,” the Russo brothers’ project “The Electric State” starring Millie Bobby Brown, “Happy Gilmore 2” starring Adam Sandler, and del Toro’s new interpretation of Frankenstein directed by Guillermo.
“We are fortunate to have no distractions, such as managing a declining linear network, and our focus and continued investment has enabled us to improve product-market fit around the world,” the company said in an earnings call Tuesday. It’s improving,” he said.
Netflix also announced that it will increase prices for some streaming tiers from $1 to $2 per month.
Netflix’s cheaper ad-supported plans accounted for more than 55% of signups in countries where the option is available, the company said. Netflix also noted that the number of members for ad-supported plans increased by about 30% quarter-over-quarter.
The company said it is “on track to reach sufficient scale for advertising membership in all advertising countries by 2025.” “Our top priority in 2025 is to improve our offering for advertisers and significantly grow advertising.”
