LOS ANGELES — Shares of Netflix jumped in extended trading Tuesday after the company reported adding 13.1 million subscribers during the fourth quarter, stronger growth than Wall Street expected as the streamer builds its ad-supported service and cracks down on password sharing.
Netflix now has 260.8 million paid subscribers, a new record for the service.
The subscriber growth easily tops the 8.76 million paid membership adds Netflix reported in the third quarter. The company also blew past Wall Street’s fourth-quarter expectations of 8 million to 9 million.
Here are the results:
- Earnings: $2.11 per share vs. $2.22 per share expected by LSEG, formerly known as Refinitiv
- Revenue: $8.83 billion vs. $8.72 billion expected by LSEG
- Total memberships: 260.8 million vs. 256 million expected, according to Street Account
Netflix reported fourth-quarter net income of $937.8 million, or $2.11 per share, versus $55.3 million, or 12 cents per share, in the prior-year period.
The company posted revenue of $8.83 billion for the quarter, up from $7.85 billion in the year-ago quarter.
As Netflix focuses on improving profits, the company increased its 2024 full-year operating margin forecast to 24%, up from a range of 22% to 23%. It cited the weakening of the U.S. dollar and a stronger-than-forecast fourth-quarter performance.
The company also projects earnings per share of $4.49 for the fiscal first quarter of 2024, higher than the $4.10 Wall Street had expected.
While rivals in the streaming space have struggled to reach profitability, and have been cutting down on content spend, Netflix is prepared to invest in a larger slate. However, it won’t be doing that through acquisitions of traditional entertainment companies or linear assets, the company said in a letter to shareholders Tuesday.
“As our competitors adjust to these changes, it’s logical to expect further consolidation, particularly among companies with large and declining linear networks,” the company said. “We’re not…
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