Netflix (NFLX.US) Q4 earnings report beats expectations, paid membership surpasses 300 million.

Netflix (NFLX.US) delivered a strong performance in its fourth-quarter earnings report released on Tuesday, exceeding Wall Street's expectations for revenue and profit, leading to a more than 13% surge in its stock price after hours. Netflix announced that its paid membership surpassed 300 million in the fourth quarter, with a record-breaking addition of 19 million new users. The company attributed this growth to high-quality content, product improvements, and the usual seasonal uptick in the fourth quarter. Additionally, including "additional member accounts," Netflix estimates its global audience has exceeded 700 million. Netflix's performance for the quarter ending December 31st exceeded market expectations, with earnings per share of $4.27, higher than the expected $4.20; revenue reaching $10.25 billion, surpassing the expected $10.11 billion; and paid membership reaching 301.63 million, exceeding the expected 290.9 million. The company's net income surged from $938 million ($2.11 per share) in the same period last year to $1.87 billion ($4.27 per share), doubling year over year. Fourth-quarter revenue grew by 16% year over year, reaching $10.25 billion, higher than market expectations. Netflix raised its full-year revenue forecast for 2025 to $43.5 billion to $44.5 billion, approximately $500 million higher than previously predicted. This reflects the company's improving core business and the continued impact of its better-than-expected performance in the fourth quarter. The fourth quarter marks the last time Netflix will report paid membership numbers quarterly. In the future, Netflix will switch to releasing a "user engagement report" semi-annually, coinciding with the second and fourth-quarter earnings reports. Netflix highlighted the success of its fourth-quarter content, including the release of the popular series "Squid Game" Season 2 and record-breaking live sports events like the boxing match between Jake Paul and Mike Tyson and the NFL game on Christmas day. Looking ahead to 2025, Netflix plans to further optimize its core business, release more series and films, improve user product experience, and continue to develop its advertising business. Additionally, the company will explore opportunities in live events and gaming. In 2025, Netflix will see the return of popular series such as "Stranger Things" and "Wednesday," which are expected to attract more users and drive growth.