Netflix tops Q4 earnings forecast, shares soar
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The news: Netflix reported higher-than-expected earnings and revenue and added record number of subscribers in the fourth quarter, sending its shares higher in after-market trading.
The numbers: Fourth quarter revenue rose 16% to USD10.25 billion ($16.4 billion), beating analyst expectations for USD10.1 billion. It reported earnings per share of USD4.27, exceeding analyst estimates of USD4.20. The company said it added a record 18.9 million subscribers in the quarter, taking the total number of subscribers to 301.6 million.
Netflix shares jumped more than 11% in after hours trade in New York.
The context: The strong subscriber gains for the streaming giant came on the back of two US NFL games, the successful Jake Paul vs. Mike Tyson boxing match, and the return of the Squid Game series.
The company announced a USD15 billion share buyback and boosted its full-year revenue outlook. Netflix now projects 2025 revenue between USD43.5 billion to USD44.5 billion, ahead of its previous USD43 billion to USD44 billion estimate.
Netflix said it was adjusting prices across most plans in the US, Canada, Portugal and Argentina, with this expected to affect subscriptions.
This is the last earnings report in which Netflix will reveal net subscriber figures. Last year, the company announced it would stop reporting the metric from the start of 2025.
The sources: Netflix release, Reuters
