In this article, shares of Netflix surged over 14% on Tuesday following the company’s fourth-quarter results that exceeded expectations in both revenue and profit. During the quarter, Netflix surpassed 300 million paid memberships and added a record 19 million subscribers. The company attributed this growth to its content lineup, product enhancements, and typical fourth-quarter seasonality. Netflix also revealed that its global audience, including “extra member accounts,” is estimated to exceed 700 million.
During an investor call, Netflix co-CEO Ted Sarandos emphasized the company’s focus on providing a diverse and high-quality content slate across various regions and genres throughout the year. For the quarter ending Dec. 31, Netflix reported a net income of $1.87 billion, or $4.27 per share, up from $938 million, or $2.11 per share, in the same period the previous year. Revenue for the fourth quarter rose by 16% year over year to $10.25 billion, surpassing Wall Street’s prediction of $10.11 billion.
Netflix adjusted its revenue expectations for the full year 2025 to a range of $43.5 billion to $44.5 billion, reflecting improved business fundamentals and the positive impact of its strong fourth-quarter performance. The company announced that it will no longer report quarterly paid subscriber counts after the fourth quarter, opting instead to release a biannual “engagement report” alongside its second- and fourth-quarter results.
Netflix highlighted the success of its fourth-quarter content lineup, which included the release of “Squid Game” season 2, live sporting events like the Jake Paul versus Mike Tyson boxing match, and NFL games on Christmas Day. The company plans to enhance its core business with more series and films, improve the product experience, and expand its advertising business. Netflix is also set to venture into live events and gaming.
Upcoming releases for 2025 include the return of popular series like “Stranger Things” and “Wednesday,” as well as new films featuring A-list directors and actors such as Daniel Craig and Rian Johnson’s “Knives Out” sequel, a Russo Brothers project starring Millie Bobby Brown, “Happy Gilmore 2” with Adam Sandler, and a fresh adaptation of “Frankenstein” by Guillermo del Toro.
Netflix announced a price increase of $1 to $2 per month for certain streaming tiers. The company noted that over 55% of sign-ups in countries offering ad-supported tiers opted for the cheaper plans, with memberships on these plans growing by around 30% quarter over quarter. Netflix aims to enhance its advertising offering to attract more advertisers and drive significant growth in its advertising business by 2025.
