Netflix shares soared more than 10% on Tuesday after the company posted top-performing fourth-quarter results.
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, improved products and typical fourth-quarter seasonality.
The company also shared that including “additional member accounts,” its global audience is estimated to be over 700 million.
Here’s how Netflix performed in its most recent quarter, ended Dec. 31, compared to Wall Street estimates:
- Earnings per share: $4.27 vs. $4.20, according to LSEG
- Revenue: $10.25 billion vs. $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, compared with $938 million, or $2.11 per share, during the same quarter a year earlier.
Revenue in the fourth quarter rose 16% year over year, reaching $10.25 billion, more than the $10.11 billion Wall Street had forecast.
For the full year 2025, Netflix raised its revenue expectations to a range of $43.5 billion to $44.5 billion, about $500 million higher than its previous forecast to reflect better business fundamentals and the expected carryover benefit from its Q4 performance. Stronger than expected quarter.
The fourth quarter was the last in which Netflix will report quarterly paid subscriber counts, as previously announced. Instead, it will begin reporting a semi-annual “engagement report” alongside its second and fourth quarter releases.
On Tuesday, the streamer touted the success of its fourth-quarter slate, which included the launch of Season 2 of the hit series “Squid Game,” as well as live sporting events like Jake Paul and Mike Tyson’s record-breaking boxing match. and national football. League matches on Christmas Day.
This year, the company said it plans to enhance its core business with more series and movies, improve its product experience and continue to grow its advertising business. Netflix is also expected to delve into the live gaming and events space.
The company also plans the return of “Strangers Things” and “Wednesday”, two of its biggest hits, for 2025.
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