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Shares Netflix rose more than 10% on Tuesday after the company reported fourth-quarter results that beat the top and bottom lines.
The company surpassed 300 million paid memberships this quarter, adding a record 19 million subscribers. Netflix said growth was driven by content offerings, improved product and typical fourth-quarter seasonality.
The company also shared that, including “additional member accounts,” its estimated global audience exceeds 700 million.
Here's how Netflix performed this year last quarter, ended December 31, compared to Wall Street estimates:
- Earnings per share: $4.27 down from $4.20, according to LSEG
- Income: $10.25 billion, down from $10.11 billion, according to LSEG
- Paid membership: 301.63 million compared to 290.9 million, according to StreetAccount
Net income for the period was $1.87 billion, or $4.27 per share, compared with $938 million, or $2.11 per share, in the same quarter a year earlier.
Fourth-quarter revenue rose 16% year-over-year to $10.25 billion, more than Wall Street's forecast of $10.11 billion.
Netflix raised its full-year 2025 revenue expectations to a range of $43.5 billion to $44.5 billion, approximately $500 million more than its previous forecast, reflecting improved business fundamentals and the expected benefits of the move in the form of better-than-expected results in the fourth quarter.
The fourth quarter was the last time Netflix would report quarterly paid subscriber numbers, as previously announced. Instead, it will begin publishing a biannual “engagement report” along with its second and fourth quarter releases.
On Tuesday, the streamer touted the success of its fourth quarter, which included the premiere of the second season of the popular series “Squid Game” as well as live sports events such as the record-breaking boxing match of Jake Paul and Mike Tyson and the National Football League matches in Christmas.
This year, the company said it plans to enhance its core business with more TV series and movies, improve product experiences and continue to grow its advertising business. Netflix is expected to delve deeper into the live events and gaming space.
The company also plans to return “Strangers Things” and “Wednesday,” two of its biggest hits, in 2025.
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