Netflix Inc. reported strong fourth-quarter results, exceeding both revenue and earnings expectations. The company added a record 19 million paid subscribers, surpassing 300 million globally.
“We really have built the business on variety and quality across countries, across regions, across genres,” said Netflix co-CEO Ted Sarandos, highlighting the success of its content slate, including “Squid Game” Season 2, live sporting events, and a strong lineup of films.
Key Financial Highlights
- Revenue: Jumped 16% year-over-year to $10.25 billion.
- Net Income: Increased to $1.87 billion from $938 million in the same period last year.
- Full-Year Revenue Guidance: Raised to $43.5 billion to $44.5 billion.
Subscriber Growth and Engagement
- Record Additions: Added 19 million paid subscribers in the quarter.
- Global Audience: Exceeds 700 million, including extra member accounts.
- Shifting Focus: Netflix will report biannual engagement reports instead of quarterly subscriber counts.
- Ad-Supported Growth: Accounted for over 55% of sign-ups in available markets, with 30% quarter-over-quarter growth.
Looking Ahead
- Content Focus: Plans to enhance its core business with more series, films, and live events.
Upcoming Releases
Anticipates strong performances from “Stranger Things,” “Wednesday,” and highly anticipated films like “Knives Out” and “The Electric State.”
- Price Increases: Will raise prices on some streaming tiers by $1 to $2 per month.
- Ad Business Growth: Prioritizing improvements to its ad offering to expand its advertising revenue.
Netflix emphasised its focus on improving product experience, expanding its live events offerings, and continuing to invest in high-quality content across various genres.
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