In this article, shares of Netflix surged over 14% on Tuesday following the company’s fourth-quarter results that exceeded expectations in both revenue and profit. During the quarter, Netflix surpassed 300 million paid memberships, with a record addition of 19 million subscribers. The company attributed this growth to its content lineup, product enhancements, and typical fourth-quarter trends. Netflix estimated its global audience, including “extra member accounts,” to exceed 700 million.
Netflix’s co-CEO Ted Sarandos emphasized the company’s focus on providing diverse and high-quality content across various regions and genres during an investor call. For the quarter ending Dec. 31, Netflix reported a net income of $1.87 billion, or $4.27 per share, up from $938 million, or $2.11 per share, in the same period the previous year. Revenue for the fourth quarter rose by 16% year over year to $10.25 billion, surpassing Wall Street’s prediction of $10.11 billion.
For the full year 2025, Netflix revised its revenue outlook to a range of $43.5 billion to $44.5 billion, reflecting improved business fundamentals and the positive impact of its strong fourth-quarter performance. The company announced that it would discontinue reporting quarterly paid subscriber counts after the fourth quarter, opting instead for a biannual “engagement report” alongside its second- and fourth-quarter releases.
Netflix highlighted the success of its fourth-quarter content, including the popular series “Squid Game” season 2 and live sports events like the Jake Paul versus Mike Tyson boxing match and NFL games on Christmas Day. The company plans to enhance its core business with more series and films, improve the user experience, expand its advertising business, and explore opportunities in live events and gaming.
Upcoming releases for 2025 include the return of hit shows like “Stranger Things” and “Wednesday,” along with new films featuring A-list directors and actors such as Daniel Craig, Rian Johnson, the Russo Brothers, Millie Bobby Brown, Adam Sandler, and Guillermo del Toro. Netflix also announced a price increase of $1 to $2 per month for certain streaming tiers, with over 55% of sign-ups opting for the cheaper, ad-supported plans. The company aims to enhance its advertising offerings to drive growth in ad-supported memberships.
