Netflix (NFLX) Q4 2024 Earnings

shares Netflix It rose more than 14% on Tuesday after the company reported fourth-quarter results that beat the top and bottom lines.

The company surpassed 300 million paid memberships during the quarter, adding a record 19 million subscribers. Netflix said the growth was driven by its content slate, enhanced products and regular seasonality in the fourth quarter.

The company also shared that including “additional member accounts,” its global audience is estimated to exceed 700 million.

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

Here’s how Netflix does it The fourth quarter, ending December 31, Compared to Wall Street estimates:

• EPS: $4.27 vs. $4.20, according to LSEG
• profit: $10.25 billion versus $10.11 billion, according to LSEG
• Paid memberships: 301.63 million versus 290.9 million, according to StreetAccount

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

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

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

The fourth quarter was the last that Netflix would announce its quarterly paid subscriber count, as previously announced. Instead, it will begin offering its semi-annual “Engagement Report” alongside its second and fourth quarter releases.

The streamer on Tuesday praised the success of its fourth-quarter slate, which included the release of Season 2 of the hit series “Squid Game,” as well as live sporting events such as the record-breaking Jake Paul-Mike Tyson boxing match and National Football League. League matches on Christmas Day.

“We’re happy that some people came to fight and some people came to the matches, but they’re still there for ‘Squid Game,’ ‘Carry On,’ ‘Black Doves,’ ‘Six Triple Eight.’ … Nate’s new comedy,” Sarandos said. Bargatze.” “All of those things performed really well this quarter and continue in the days and weeks after the fight and after the fights.

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

This year, the company said it plans to improve its core business through more series and films, enhance its product experience and continue growing its advertising business. Netflix is ​​expected to delve deeper into the live events and gaming space as well.

The company is also gearing up for the return of Strangers Things and Wednesday, two of its biggest films, in 2025. Additionally, the streamer will release a slate of new films from major directors and actors including the third film from Daniel Craig and Rian Johnson. “Knives Out,” a Russo Brothers project called “The Electric State” starring Millie Bobby Brown, “Happy Gilmore 2” with Adam Sandler and a new Frankenstein film from Guillermo del Toro.

“We are fortunate that we do not have any distractions such as managing deteriorating linear networks, and with our continued focus and investment, we have a good, improved product that is market fit around the world,” the company said in its earnings report on Tuesday.

Netflix also announced that it will raise prices on some 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 available, the company said. Netflix also noted that memberships on its ad-supported plans increased nearly 30% quarter-over-quarter.

“We are on track to reach sufficient scale for ad members in all our ad countries in 2025,” the company said. “The top priority in 2025 is to improve our offerings to advertisers so we can grow our advertising significantly.”