Netflix reported its fourth-quarter earnings on Thursday, whiffing slightly on revenue but beating company guidance and Wall Street estimates for global paid-net-subscriber additions. Netflix also beat earnings-per-share estimates.
Netflix added 8.8 million paid subscribers globally, rising to 139 million.
The results came just days after Netflix unleashed its biggest price hike ever, which increased its most popular plan from $US11 per month to $US13 per month.
Industry watchers were looking for signs in Netflix’s guidance for how that price increase might affect its subscriber growth in the first quarter. The streamer estimated it would add 8.9 million paid subscribers globally, well above the Wall Street estimates of 8.5 million.
The stock fell about 4% immediately following the news, but Netflix had been up 32% since the start of the year.
Netflix spotlighted some of its blockbuster content in its letter to shareholders, saying that it estimated its original movie “Bird Box” would be “enjoyed” by 80 million households in the first month. Netflix said it had seen “high repeat viewing.”
Here were the key numbers from Netflix’s Q4 earnings:
- Q4 revenue: $US4.19 billion, versus Wall Street estimates of $US4.21 billion and Netflix’s forecast of $US4.20 billion.
- Q4 earnings per share (GAAP): $US0.30, versus Wall Street estimates of $US0.24 and Netflix’s forecast of $US0.23.
Q4 total paid subscriber growth (paid net additions): 8.8 million, versus Wall Street estimates of 7.6 million and Netflix’s forecast of 7.6 million.
- 1.5 million US.
- 7.3 international.
Q1 total paid-subscriber-growth guidance (estimated paid net additions): 8.9 million, versus Wall Street estimates of 8.5 million.
- 1.6 million US.
- 7.3 million international.
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