Netflix shares jumped over 10% in after-hours trading, hitting a record high following its impressive fourth-quarter earnings.
Subscriber Growth and Content Success
Netflix added 19 million new subscribers during the quarter, bringing its global user base to 302 million.
The surge exceeded analyst expectations, fueled by a crackdown on password sharing and popular live sports programming.
Key events, such as the Jake Paul vs. Mike Tyson match and NFL games, drove record-breaking user registrations.
The company will stop reporting subscription numbers, focusing instead on profit margin and revenue growth in future reports.
Business Highlights
Netflix credited its growth to hit content, special event programming, and an expanding ad-supported tier.
Major successes included Squid Game Season 2, Carry-On, and live broadcasts of sports events like the Beyoncé Bowl.
Netflix secured US broadcasting rights for the FIFA Women’s World Cup in 2027 and 2031, emphasizing its commitment to exclusive programming.
The ad-supported tier drove 55% of sign-ups in ad-enabled countries, with membership rising 30% sequentially.
In 2025, Netflix aims to improve its ad offerings to boost advertising revenue further.
Record-Breaking Financial Performance
Netflix’s quarterly revenue rose 16% year-over-year to $10.25 billion (€9.83 billion), beating analysts’ expectations of $10.11 billion (€9.7 billion).
Earnings per share more than doubled to $4.27 (€4.10) compared to $2.11 (€2.02) the previous year.
Despite a 22% operating margin, its lowest in 2024, the company maintained strong growth due to heavy investments in live programming.
For 2024, Netflix’s total revenue grew 16%, while net income surged by 62%.
Future Plans and Optimism
Netflix projects 2025 revenue between $43.5 billion (€41.7 billion) and $44.5 billion (€42.7 billion), with 12% to 14% growth.
The company upgraded its operating margin forecast to 29% and expects free cash flow to reach $8 billion (€7.7 billion).
Netflix plans to invest in new series, films, and live programming while raising prices in select markets.
It remains optimistic about flagship shows like Stranger Things, Wednesday, and Squid Game, returning in 2025.
“Netflix’s continued success in delivering compelling content supports price increases and ensures its strong growth trajectory,” said analyst Josh Gilbert.