Netflix Q4 Earnings: Record Subscribers, NFL, 'Squid Game' Push Past 'Highest Expectations'

Core Insights - Netflix reported fourth-quarter revenue of $10.25 billion, a 16$10.11 billion [1] - The company achieved earnings per share of $4.27, exceeding the expected$4.19 [1] - Netflix added 18.91 million paid subscribers in the quarter, marking a 15.9% year-over-year growth, ending with a total of 301.63 million subscribers [2] - Average revenue per member increased by 1% year-over-year [2] - The company highlighted successful content releases, including the second season of "Squid Game" and significant live events [2] Financial Performance - Operating income for the full fiscal year exceeded $10 billion for the first time in company history [3] - Netflix anticipates first-quarter revenue of$10.42 billion, an 11.2% year-over-year increase, with projected operating income of $2.94 billion and earnings per share of$5.58 [4] - Full-year revenue guidance for 2025 is set between $43.5 billion and$44.5 billion, reflecting a 12% to 14% year-over-year growth [5] Strategic Focus - The company will no longer report membership growth figures starting in fiscal 2025, indicating a focus on overall business health [5] - Netflix aims to enhance its core business through more series and films, and to explore new initiatives like live programming and games [5] - The company maintains a leadership position in engagement, revenue, and profit, with optimism for the return of major shows in 2025 [6] Market Opportunity - Netflix estimates there are over 750 million broadband households globally, excluding China and Russia, capturing around 6% of a $650 billion revenue opportunity in its key markets [7] - The company believes it accounts for less than 10$962.49 in after-hours trading, reaching a new 52-week high [7]