Netflix shares surge as it adds record subscribers in fourth quarter

The news: Netflix has reported much better-than-expected subscriber gains in the fourth quarter, driven by a strong slate of shows and original programming.

The numbers: The streaming giant added 13.1 million subscribers in the December quarter — its largest fourth-quarter subscriber growth ever — handily exceeding market estimates of 8.97 million. Its per-share earnings of USD2.11 fell slightly short of consensus estimates due to a USD239 million ($363 million) non-cash loss related to currency exchange rates. Revenue rose to USD8.8 billion, topping forecasts.

The context: Netflix shares surged more than 7% in after hours trading in New York after the company said it expects healthy double-digit revenue growth for full-year 2024, as it continues to add members and invests in its advertising business. The company credited gains to the strength of its intellectual property, which included a new reality show "Squid Game: The Challenge", new original series and non-English-language programming. It will also continue to benefit from a crackdown on password sharing that boosted growth of an advertising-supported tier last year.

Earlier in the day, Netflix announced a more than USD5 billion deal to bring World Wrestling Entertainment's "Raw" and some other programming exclusively on the streaming service, in its first big step into live events.