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Key Takeaways
- Netflix reported earnings of $938 million or $2.11 per diluted share in the fourth quarter.
- Revenue of $8.83 billion rose 12% compared to the year-ago quarter.
- Netflix’s subscribers grew 12.8% to 260.28 million.
- Netflix shares jumped in after-hours trading.
Netflix (NFLX) reported better-than-expected revenue in the fourth quarter on the back of renewed subscriber growth momentum, but a one-time charge saw earnings narrowly miss estimates.
The company’s net income for the quarter came in at $938 million or $2.11 per diluted share. Those figures were slightly lower than the $983.9 million or $2.25 per diluted share expected by analysts polled by Visible Alpha. A $239 million charge related to foreign exchange measurement of denominated debt made EPS miss the company’s own $2.15 per share projection.
Revenue grew 12% compared to the year-ago quarter to $8.83 billion.
| Q4 2023 | Analyst Estimates for Q4 2023 | Q4 2022 | |
| Revenue | $8.83 billion | $8.7 billion | $7.9 billion |
| Earnings Per Share | $2.11 | $2.25 | $0.12 |
| Net Income | $938 million | $983.9 million | $55.3 million |
Key Metric
After relatively flat subscriber growth at the end of 2021 and through most of 2022, Netflix has gained momentum in recent quarters due to its tiered pricing structure and a crackdown on password sharing. The lowest pricing tier at $6.99 is ad-supported, another way for the company to monetize.
In the fourth quarter, Netflix had 260.28 million paying customers globally, up 12.8% compared to the year-ago quarter.
Netflix shares were up 8.4% at $533.66 in after-hours trading at around 5:00 p.m. ET.