Proactive Investors - Netflix Inc (NASDAQ:NFLX) shares took off in afterhours trade Tuesday as the streamer’s fourth quarter revenue exceeded expectations amid continued subscriber growth.
Revenue of $8.83 billion topped Wall Street analyst expectations of $8.72 billion. This year-over-year growth of 13.2% was attributed to Netflix’s paid-sharing model, recent price changes, and its strong content slate.
Earnings per share (EPS) of $2.11, however, missed expectations of $2.20 and included a $239 million non-cash unrealized loss from F/X measurement on the company’s Euro-dominated debt.
Netflix added 13.1 million new subscribers during the quarter with its number of paid memberships reaching $260.3 million, up 12.8% year-over-year and beating the streamer’s forecast of about 9 million additions.
For the current quarter, 1Q, Netflix guided EPS of $4.49 on revenue of $9.24 billion, ahead of EPS estimates of $4 but slightly below the consensus revenue forecast of $9.28 billion.
“We expect healthy double-digit revenue growth for the full year 2024 on a F/X neutral basis driven by continued membership growth as well as improvement in F/X neutral average revenue per member (ARM) as we adjust prices,” the company wrote in a letter to shareholders accompanying its results.
“We’ll also continue to invest in and build our ads business; we expect strong growth in 2024 but off a small base so it’s not yet a primary driver of our overall revenue growth.”
Netflix shares gained 7.2% at US$527.40 shortly following the release of its earnings report.