Netflix Posts Record Subscriber Growth, Driven by Live Events and Squid Game
Fourth Quarter Performance
In its final quarterly subscriber report, Netflix Inc. (NFLX) announced a record-breaking Q4 2024, adding 18.9 million new subscribers worldwide. This surge exceeded analyst expectations and pushed the company's total subscriber base over 300 million.
Financial Metrics
Revenue for the quarter increased by 16% to $10.2 billion, marking the highest growth since late 2021. The company projects revenue to grow faster than anticipated in 2025, partly due to price increases. In the US, the most popular plan will rise to $17.99 per month.
Live Programming Success
Netflix's inaugural live sports events and the return of Squid Game were major drivers of subscriber growth. A boxing match between Jake Paul and Mike Tyson generated a record number of sign-ups, surpassing even the company's first National Football League games.
"Our newly established live programming slate has already delivered some must-watch moments," Netflix said. "We think the eventized nature will result in outsized value for both our members and our business."
Advertising Progress
Live programming is crucial for Netflix's growing advertising business. The company currently displays ads during football and wrestling for all members, regardless of subscription tier. While advertising revenue remains modest, Netflix expects it to become materially beneficial by 2026.
Outlook
For Q1 2025, Netflix forecasts revenue of $10.4 billion and earnings of $5.58 per share, slightly below analyst estimates. Despite the transition away from quarterly subscriber reporting, the company's strong performance and promising outlook have boosted investor confidence.
Shares of Netflix surged over 12% in extended trading after the earnings announcement, potentially setting a new all-time high.