Netflix achieved a record fourth quarter with 300 million paid memberships and added 19 million subscribers, surpassing Wall Street estimates. The company’s global audience is estimated to be over 700 million when including “extra member accounts.” CEO Ted Sarandos attributed the growth to its content slate, improved product, and seasonality.
In terms of financial performance, Netflix’s earnings per share ($4.27) and revenue ($10.25 billion) beat estimates, with net income reaching $1.87 billion. The company raised its 2025 revenue forecast to a range of $43.5 billion to $44.5 billion, citing improved business fundamentals.
This quarter marked the last for quarterly paid subscriber counts, as Netflix will begin reporting bi-annual “engagement reports” starting in 2024. Sarandos highlighted the success of its fourth-quarter slate, including live sporting events and new series like “Squid Game.” The company plans to focus on core business improvements, product enhancements, and growing its ads business.
However, Netflix also announced price increases for some streaming tiers between $1 and $2 per month. The company noted that ad-supported memberships accounted for over 55% of sign-ups in countries where the option is available, with growth of around 30% quarter-over-quarter.
Source: https://www.cnbc.com/2025/01/21/netflix-nflx-earnings-q4-2024.html