Netflix (NFLX) earnings Q4 2024

Actions of Netflix rose more than 14% on Tuesday after the company posted fourth-quarter results that beat the top and bottom.

The company surpassed 300 million paid subscriptions during the quarter, adding a record 19 million subscribers. Netflix said the growth was driven by its content list, improved product and seasonality typical of the fourth quarter.

The company also shared that including “extra member accounts”, its global audience is estimated to be more than 700 million.

“We’ve really built the business on variety and quality across countries, across regions, across genres and really focused all year on having a very strong slate of programming for our members,” the co -Netflix CEO Ted Sarandos said during an investor call.

Here’s how Netflix did it for them the last quarter, ended December 31, compared with Wall Street estimates:

• Earnings per share: $4.27 versus $4.20, according to LSEG
• Revenue: $10.25 billion versus $10.11 billion, according to LSEG
• Paid subscriptions: 301.63 million versus 290.9 million, according to StreetAccount

Net income for the period was $1.87 billion, or $4.27 per share, from $938 million, or $2.11 per share, during the same quarter a year earlier.

Revenue in the fourth quarter jumped 16% year over year to $10.25 billion, higher than the $10.11 billion that Wall Street had expected.

For the full year 2025, Netflix raised its revenue expectations to a range of $43.5 billion to $44.5 billion, about $500 million higher than its previous forecast to reflect business fundamentals improved and the expected carryover benefit of its stronger-than-expected fourth-quarter performance.

The fourth quarter was the last for which Netflix will report the number of paid subscribers quarterly, as previously announced. Instead, it will begin reporting a bi-annual “engagement report” alongside its second and fourth quarter releases.

The streamer on Tuesday announced the success of its fourth quarter list, which included the release of season 2 of the hit series “Squid Game” as well as live sports events such as the record match of boxing of Jake Paul and Mike Tyson and the National Football. League games on Christmas Day.

“We’re excited that some people came for the fight and some people came for the games, but they stayed for ‘Squid Game’ and for ‘Carry On’ and for ‘Black Doves’ and for ‘Six Triple Eight.’ . Nate Bargatze’s new comedy special,” Sarandos said. “All of those things did really well in the quarter and continued in the days and weeks after the fight and after the games.

“And what’s really been most encouraging is the retention behavior of those who came for those events are very similar to those who come for all our other big titles,” he said.

This year, the company said it plans to improve its core business with more series and movies, enhance its product experience and continue to grow its advertising business. Netflix is ​​expected to delve further into the space of live events and games.

The company also has the return of “Strangers Things” and “Wednesday”, two of its biggest hits, ahead for 2025. In addition, the streamer will release a collection of new films from the main directors and actors including the third of Daniel Craig and Rian Johnson ” “Knives Out”, a Russo Brothers project called “The Electric State” with Millie Bobby Brown, “Happy Gilmore 2” with Adam Sandler and a new interpretation. Frankenstein by Guillermo del Toro.

“We are lucky that we do not have distractions such as the management of linear networks in decline and, with our focus and continued investment, we have a good and improving product/market in the world,” said the company in its earnings report on Tuesday.

Netflix has also announced that it will raise prices on certain streaming tiers between $1 and $2 per month.

Netflix’s cheaper, ad-supported tiers account for more than 55% of subscriptions in countries where the option is offered, the company said. Netflix also noted that subscriptions on its ad-supported plans grew around 30% quarterly.

“We are on track to reach sufficient scale for ad members in all our ad countries by 2025,” the company said. “A top priority in 2025 is to improve our offer for advertisers so that we can substantially increase our advertising.”

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