Video streaming giant Netflix posted strong fourth-quarter results, surpassing analysts’ expectations with a 16 percent revenue growth to USD10.25 billion. It also reported a notable surge in profits, reaching USD1.87 billion, more than doubling its earnings from the same period last year.
The strong earnings growth, coupled with the addition of 19 million new subscribers, sent Netflix’s shares soaring by 9.7 percent, making it one of the top performers on the S&P 500 on Wednesday.
Netflix wrapped up 2024 with a total of 302 million memberships, underscoring its continued global dominance. Analysts expect the video streaming platform to face minimal resistance to its upcoming subscription price hikes, pointing to the company’s strong content slate in 2025.
For 2025, Netflix raised revenue outlook to between USD43.5 billion and USD44.5 billion, higher by USD500 million than its previous estimate. This is buoyed by an aggressive USD15 billion expansion of Netflix’s share repurchase program. This brings the video streaming company’s total share buyback authorization to USD17.1 billion. The company repurchased nearly 10 million shares for USD6.2 billion last year.
Netflix also signaled a shift in how it reports its user growth, as the fourth quarter will be the last to feature membership and average revenue per member figures on a quarterly basis. The company’s ongoing strategy of increasing subscription prices across key markets, including the U.S., Canada, Portugal, and Argentina, is already factored into its revised guidance for the year.
