FMP
Jan 22, 2025 2:54 PM - Davit Kirakosyan
Image credit: FMP
Netflix (NASDAQ:NFLX) surged more than 15% in pre-market trading today after delivering a stellar fourth-quarter performance that far exceeded Wall Street expectations, driven by a dramatic rise in subscriber numbers and robust revenue growth.
For the quarter, the streaming leader reported earnings of $4.27 per share on revenue of $10.25 billion, surpassing analyst estimates of $4.20 per share and $10.1 billion in revenue. The company’s standout achievement was its addition of 18.9 million new subscribers, more than doubling projections of 9.2 million, propelled by a strong content lineup and increasing popularity of its ad-supported membership tier.
Netflix attributed its success to a remarkable slate of content, highlighting the impressive performance of Squid Game Season 2, the inclusion of Carry-On among its all-time top 10 films, and the record-breaking viewership of the Jake Paul vs. Mike Tyson fight and Christmas Day NFL games.
The ad-supported tier emerged as a key growth driver, accounting for over 55% of new sign-ups in the fourth quarter, with a 30% sequential increase in memberships. Netflix emphasized its commitment to expanding advertising revenue, announcing plans to enhance its first-party ad platform starting in the U.S. in April 2025.
In response to its subscriber growth, Netflix raised prices for its ad-supported plan in the U.S. to $7.99 from $6.99, while its premium tier increased by 9% to $24.99. Similar price hikes were rolled out in markets such as Canada, Portugal, and Argentina.
Looking ahead, Netflix projected 2025 revenue of $43.5 billion to $44.5 billion, a $500 million increase from previous guidance and slightly ahead of analyst expectations of $43.6 billion.
May 27, 2024 3:30 PM - Rajnish Katharotiya
In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...
Jun 6, 2024 2:47 AM - Parth Sanghvi
ROE vs. ROA: Which Metric is More Important for Investors? When evaluating a company's financial performance, investors often rely on various metrics to gauge profitability and efficiency. Two commonly discussed metrics are Return on Equity (ROE) and Return on Assets (ROA). Understanding the diff...
Jun 6, 2024 2:57 AM - Parth Sanghvi
When it comes to valuing an investment or a business, two of the most commonly used methods are Discounted Cash Flow (DCF) and Net Present Value (NPV). Both methods are essential tools in finance, but they serve slightly different purposes and are used in different contexts. This guide will explore ...