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.