Netflix Q4 Earnings Beat Expectations, Boosting Stock Price
Key Financial Highlights:
* Q4 revenue: $10.25 billion (beat expectations of $10.11 billion)
* Q4 diluted earnings per share (EPS): $4.27 (beat expectations of $4.18)
* Q4 operating margin: 22.2%
Strong Subscriber Growth:
* Added 18.9 million subscribers in Q4, exceeding expectations of 9.18 million
* Success fueled by live sports programming, "Jake Paul vs. Mike Tyson" boxing match, and the return of "Squid Game"
Price Hikes Announced:
* Ad-supported plan: $7.99 (up from $6.99)
* Standard plan: $17.99 (up from $15.49)
* Premium plan: $24.99 (up from $22.99)
* Extra member add-on: $8.99 (up from $7.99)
Focus on Live Sports:
* Live events accounted for a minority of new customers in Q4
* Netflix plans to continue expanding its live sports offerings, including WWE Raw and potential UFC rights
Other Profitability Metrics:
* Q4 operating margin: 22.2%
* Q1 operating margin guidance: 28.2%
* Q4 EPS guidance: $5.58 (below consensus estimates of $6.01)
Company Outlook:
* Netflix projects 2025 revenue between $43.5 billion and $44.5 billion
* Company remains confident in its competitive position despite industry challenges