Netflix said it added a record 18.91m paid global subscribers in the fourth quarter as its recent foray into live sports and the debut of Squid
Netflix said it added a record 18.91m paid global subscribers in the fourth quarter as its recent foray into live sports and the debut of Squid Games 2 helped raise the total to 301.6m.
As previously announced, staring in April’s earnings call the platform will no longer provide quarterly subscriber updates as it focuses on financials, although it will offer milestone updates. Shares climbed by more than 14% in after hours trading
Revenue crossed $10bn for the first time in the company’s history on $10.2bn, beating Wall Street estimates of $10.1bn, and grew by 16% year-on-year. Operating margin reached 22.2%, while earnings per share of $4.27 beat $4.21 estimates.
The live sports content during the quarter included the Mike Tyson-Jason Paul boxing bout and the two NFL American Football games on December 25. The original Taron Egerton thriller Carry-On was another highlight for the quarter ended December 31, 2024.
Prices are going up. the Standard With Ads plan in the US will climb from $6.99 to $7.99 a month; Standard (ad-free) is increasing from $15.59 to $17.99; and Premium is increasing from $22.99 to $24.99.
Addressing production in the wake of the LA County wildfires, co-CEO Ted Sarandos said there was “no meaningful” delay to planned productions, while there was “very meaningful disruption in people’s lives”. He added, “It’s really important we try not to delay anything and make sure these jobs stay safe.”
Sarandos said the recent deal with Imax to exhibit Greta Gerwig’s Narnia exclusively for two weeks in 2026 prior to the platform drop does not indicate a theatrical strategy shift. “No change at all […] Our core strategy is to give our members exclusive first-run movies on Netflix,” the executive said, adding that the company will continue to give theatrical uplifts for premium festival and awards season contenders.
Netflix is projecting 2025 revenue of $43.5bn-$44.5bn, representing 12%-14% year-on-year growth. The company’s forecast is approximately $500m higher than its prior range, due to “improved business fundamentals and the expected carryover benefit of our stronger-than-forecasted Q4’24 performance, net of headwinds from the strengthening of the US dollar over the past few months”.
For Q1 2025 Netflix said it expects revenue growth of 11%, “modestly below our full year guidance due to the timing of price changes and the seasonality of our ads business”.
2024 delivered a record 41m net subscriber additions and a 16% escalate in revenue. “Our business remains intensely competitive with many formidable competitors across traditional entertainment and big tech,” the company said in its letter to shareholders. We’re fortunate that we don’t have distractions like managing sinking linear networks and, with our focus and continued investment, we have good and improving product/market fit around the world.”
The 2025 feature roster includes Guillermo del Toro’s Frankenstein, Kathryn Bigelow’s untitled White House thriller, the next Knives Out film Wake Up Dead Man from Rian Johnson, the Russo brothers’ action film The Electric State, and Happy Gilmore 2. The TV slate includes fresh seasons of Wednesday, Stranger Things, The Night Agent, Japan’s Alice In Borderland, and India’s Delhi Crime. Netflix streams the SAG Awards on February 23.
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