Netflix Surges on Record Subscriber Growth, Revenue Boost
Netflix Inc. (NFLX) concluded 2024 with its highest quarterly subscriber gain ever, driven by major live sporting events and the return of the popular series "Squid Game."
* 18.9 million new subscribers were added in Q4, surpassing Wall Street projections and driving global subscribers to over 300 million.
* Revenue increased 16% to $10.2 billion, the strongest growth since late 2021.
* Sales are projected to grow faster than anticipated in 2025. Netflix will boost sales through price increases in its home markets, including a $2.50 hike to $17.99 per month for its most popular US plan.
* Netflix will discontinue reporting quarterly subscriber numbers. The company is shifting focus to financial metrics such as revenue and profit.
* Live programming is playing a vital role. The recent Jake Paul vs. Mike Tyson boxing match set a record for one-day sign-ups. Netflix highlights the "outsized value" of live events for members and its business.
* Advertising progress. Netflix is making strides in its advertising business. The majority of new customers opt for advertising in available markets, and the company expects enough scale to meet advertisers' needs by year-end.
* Video game initiative has limited success.
* Record revenue and earnings forecasted. Netflix projects revenue of $10.4 billion and earnings of $5.58 per share for the current quarter, slightly below analyst estimates.
* Share price surge. Netflix shares rose 15% in premarket trading, marking the potential for the largest gain since October 2023.