US streaming giant Netflix (NFLX) has experienced incredible growth. 13’s.12 million subscribers in Q4 2023exceedprediction by both Companies and Wall Street. After the earnings report was released, ITS stock price sat in 10% in pre–Wednesday market trading.
The company expects to add 9 million subscribers in 2022, with a net gain of about 30 million for the full year. NFLX’s earnings report beat Wall Street’s expectations of $8.71 billion, instead showing quarterly revenue of $8.83 billion, a 12.5% increase compared to the same period in 2022.
The streaming giant made waves in the film and TV world last year when it announced crackdowns on password sharing, increased advertising revenue and price hikes for certain subscription tiers. NFLX expects revenue to reach $9.24 billion in the first quarter of this year, roughly in line with its previous forecast of $9.28 billion in 2023.
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Earnings per share (EPS) came in at $2.11, lower than expected and below the fourth-quarter estimate of $2.20, while the 2022 EPS estimate remained at a reasonable $0.12. That said, the platform now expects Q1 2024 EPS to be $4.49, an increase of $0.40 from its original estimate of $4.09.
Despite a decline in streaming usage due to challenges from competitors, password sharing, and typical workdays over the course of a year (according to Screen Rant, streaming usage has increased by 37% during the pandemic), NFLX remains It continues to do well in the market. A new 10-year partnership with WWE is believed to contribute to its continued popularity, with the deal valued at over $5 billion.
