Netflix shares jumped over 14% Tuesday after the company posted fourth-quarter results that exceeded expectations.
Strong subscriber growth and robust global performance helped the streaming giant surpass Wall Street estimates across key financial metrics.
Netflix added a record 19 million paid memberships during the quarter, bringing its total to 301.63 million, above the anticipated 290.9 million.
Including “extra member accounts,” the company estimates its global audience has reached over 700 million.
Fourth-quarter revenue climbed 16% year-over-year to $10.25 billion, surpassing forecasts of $10.11 billion.
Earnings per share were $4.27, slightly above predictions of $4.20, while net income soared to $1.87 billion, up from $938 million a year earlier.
For 2025, Netflix raised its full-year revenue outlook to between $43.5 billion and $44.5 billion, reflecting improved fundamentals and strong momentum from its holiday lineup.
Content and Engagement Drive Success
This quarter marked the final time Netflix will report quarterly subscriber counts. Moving forward, the company will shift to bi-annual “engagement reports” to accompany its second- and fourth-quarter updates.
The company credited its diverse programming slate and live events for driving both subscriptions and retention.
Highlights included the second season of Squid Game, live sporting events like Jake Paul vs. Mike Tyson, and Christmas Day NFL games.
Netflix co-CEO Ted Sarandos emphasized the strong performance of these events, noting that while some subscribers joined for specific shows or events, many stayed for a variety of other content.
Plans for 2025
In 2025, Netflix plans to expand its core offerings, enhance its product experience, and grow its advertising business.
Upcoming content includes new seasons of Stranger Things and Wednesday, along with films by top directors like Guillermo del Toro and Rian Johnson.
The streamer’s ads-supported plans, which now account for more than 55% of new sign-ups in supported regions, have seen memberships grow by about 30% quarter-over-quarter.
Netflix also announced price increases of $1 to $2 on select streaming tiers. “We’re on track to reach sufficient scale for ads members in all of our ads countries in 2025,” the company said, noting that improving its offerings for advertisers is a top priority.
By leaning into live events, expanding its content library, and strengthening its ad platform, Netflix continues to position itself as a leader in the business of entertainment.
You May Also Like:
