Los Gatos, January 24, 2024, The Europe Today: Leading streaming platform Netflix reported a blockbuster fourth quarter, exceeding Wall Street estimates by adding a record-breaking 13.1 million subscribers. The strong performance was attributed to a compelling content lineup, featuring popular shows like the final season of “The Crown” and David Fincher’s original film, “The Killer.”
Netflix’s subscriber growth surpassed projections of 8.97 million, bringing the total subscriber count to an impressive 260 million. Shares of the company surged by 8.3% in after-hours trading, reflecting investor confidence. Netflix’s stock had experienced a remarkable 65% gain throughout 2023.
While reporting per-share earnings of $2.11, slightly below consensus estimates of $2.22 per share, the company highlighted a $239 million noncash loss related to currency exchange rates as a contributing factor. Nevertheless, revenue reached $8.8 billion, surpassing both forecasts and the company’s own guidance of $8.7 billion for the quarter.
Netflix anticipates robust double-digit revenue growth for the entirety of 2024, fueled by continuous subscriber additions and strategic investments in its advertising business. The streaming giant acknowledged that advertising currently doesn’t play a primary role in revenue growth but aims to change that dynamic by 2025.
The company attributed its success to a strong portfolio of intellectual property, including hits like “Squid Game: The Challenge,” new original series, feature films, and non-English-language programming. Licensing deals for popular titles like “Young Sheldon” also contributed significantly to Netflix’s growth.
Co-CEO Ted Sarandos expressed excitement about the resurgence of licensing opportunities, signaling Netflix’s openness to collaboration. The streaming giant emphasized its position as a beneficiary of evolving market dynamics, allowing it to reduce investment in riskier original production while providing other media companies with valuable revenue through licensing deals.
Netflix sees growth opportunities in improving its programming slate, expanding into advertising and games. Despite being in the early stages, the games business has already shown promise, with engagement tripling. Chief Financial Officer Spencer Neumann revealed plans to increase content spending, projecting an investment of up to $17 billion in 2024, emphasizing a smart and responsible approach.