Netflix surpasses income projections and adds 13.1 million new users as its membership drive picks up momentum

As the streamer expands its ad-supported service and cracks down on password sharing, Netflix reported gaining 13.1 million customers during the fourth quarter, stronger growth than Wall Street anticipated. This news sent shares of the business soaring in extended session on Tuesday.

The increase in subscribers vastly surpasses the 8.76 million paid membership additions that Netflix announced during the third quarter. In addition, the business far exceeded Wall Street‘s 8 to 9 million projections for the fourth quarter.

These are the outcomes:

• Profits: $2.11 per share as opposed to the $2.22 per share that LSEG, previously Refinitiv, had predicted.
• Revenue: $8.83 billion as opposed to LSEG’s projected $8.72 billion
• Total memberships: 260.8 million, as opposed to the predicted 256 million, per Street Account

In comparison to the same period last year, when it earned $55.3 million, or 12 cents per share, Netflix recorded fourth-quarter net income of $937.8 million, or $2.11 per share.

The business reported $8.83 billion in revenue for the quarter, up from $7.85 billion in the same period last year.

Netflix raised its full-year operating margin estimate for 2024 to 24% from a range of 22% to 23% as it focuses on increasing profitability. The decline in the value of the US dollar and better-than-expected fourth-quarter results were mentioned.