Netflix to jump 15% after subscriber numbers smash expectations
Last updated: 06:11 22 Jan 2025 EST, First published: 16:27 21 Jan 2025 EST
Netflix Inc (NASDAQ:NFLX, ETR:NFC) shares skyrocketed almost 15% in pre-market trading after the streaming service’s strong content slate saw it add a record 18.9 million subscribers during the fourth quarter to end the year with 302 million subscribers.
Analysts had expected Netflix to add about 9 million subscribers, below the 13.1 million it added in the year-ago quarter.
For Q4, Netflix reported earnings per share of $4.27, which topped estimates of $4.19.
Revenue of $10.25 billion marked a 16% year-over-year increase and beat the consensus of $10.12 billion.
Netflix said in a letter to shareholders that its Q4 slate outperformed even its high expectations.
“Squid Game season 2 is on track to become one of our most watched original series seasons, Carry-On joined our all-time Top 10 films list, the Jake Paul vs. Mike Tyson fight became the most-streamed sporting event ever and on Christmas Day we delivered the two most-streamed NFL games in history,” the company said.
For the first quarter, Netflix projected revenue growth of 11.2% to $10.42 billion and earnings per share of $5.58, missing Wall Street estimates of $10.5 billion and $5.96, respectively.
For the full year, Netflix boosted its full-year revenue outlook to now expect revenue in the range of $43.5 billion to $44.5 billion, up from its earlier forecast of $43 billion to $44 billion.
“We’re focused on improving all aspects of our service and, combined with the return in 2025 of our biggest shows (Squid Game, Wednesday and Stranger Things), we’re optimistic heading into the new year,” Netflix told shareholders.
Additionally, Netflix announced a $15 billion stock buyback and announced it will be raising its prices starting on Tuesday with most plans in the US, Canada, Portugal and Argentina. Details about the price increases were not immediately available.
Shares of Netflix surged 14.7% to $997.50 in pre-market trading on Wednesday.
