Netflix said Tuesday that its fourth quarter subscriber additions surged, topping its own forecast and sending its stock as much as 14% higher in early trading on Wednesday.
The subscriber additions of 13.12 million beat Netflix’s own forecast of about 9 million with full-year 2023 net additions sitting at roughly 30 million. The company had added 7.67 million paying users in Q4 2022.
Revenue beat Wall Street estimates of $8.71 billion to hit $8.83 billion in the quarter, an increase of 12.5% compared to the same period last year, as the streamer leaned on revenue initiatives like its crackdown on password sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans.
Netflix guided to first quarter revenue of $9.24 billion, roughly on par with consensus expectations of $9.28 billion.
In Q4, Netflix revealed EPS of $2.11, which was somewhat below than the $2.20 consensus estimate. Nonetheless, the business above average estimates for first-quarter earnings per share ($4.09 to $4.49). Operating margins exceeded the company’s 20% goal, coming in at 16.9% for the fourth quarter and 21% for the entire year 2023.
In Q4, as well, free cash flow exceeded consensus estimates by $1.58 billion to $1.26 billion. Netflix increased its free cash flow to $6.9 billion for full-year 2023, ahead of its guidance of $6.5 billion. Average revenue per member (ARM) was up 1% year-over-year, with Wall Street analysts expecting ARM to pick up later this year due to the ad tier impact and price hike effects. Ad-tier memberships increased by nearly 70% quarter-over-quarter.
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Netflix said Tuesday that its fourth quarter subscriber additions surged, topping its own forecast and sending its stock as much as 14% higher in early trading on Wednesday.The subscriber additions of 13.12 million beat Netflix’s own forecast of about 9 million with full-year 2023 net additions sitting at roughly 30 million. The company had added …<\/p>\n","protected":false},"author":13,"featured_media":68521,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[7113,7799,7916,9541,10409],"class_list":["post-95872","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-earnings","tag-netflix","tag-q4","tag-revenues","tag-subscribers"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/95872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=95872"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/95872\/revisions"}],"predecessor-version":[{"id":95880,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/95872\/revisions\/95880"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/68521"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=95872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=95872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=95872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}