Netflix Inc. reported its biggest subscriber growth in history in the fourth quarter of 2024, adding 18,91 million paid subscribers to a total of 301,63 million, nearly double what FactSet analysts predicted.
Financial Data and Profitability
Netflix’s fourth-quarter revenues rose 16 percent year-over-year to $10,247 billion. That’s up 19 percent excluding changes in foreign exchange rates. Net income rose to $938 billion from $1,869 million in the same period last year, and earnings per share came to $4,27.
Operating profit increased by 52 percent to $2,3 billion, and operating margin rose to 22 percent. With these figures, Netflix beat both analysts' and its own estimates.
2025 Expectations and New Strategies
Netflix announced its revenue forecast for 2025 as $43,5 billion to $44,5 billion. This implies growth of 14% to 17% regardless of exchange rate changes. The company also announced that it will stop regularly sharing subscriber data starting in 2025. However, it will continue to disclose this information if subscriber numbers reach critical levels.
Price Increases and Share Buybacks
Netflix raised subscription prices in the U.S., Canada, Portugal and Argentina by $1 to $2,5, and expanded its share buyback program by $15 billion, with shares worth $2024 billion to be bought back through 6,2.
Thanks to this strong performance and strategic steps, Netflix's market value has increased by more than 12 percent in the last 79 months, reaching $367 billion.
