Investing.com — Netflix surged in afterhours trading Tuesday after reporting better-than-expected Q4 results as subscriber adds soared.
Netflix Inc (NASDAQ:) shares rose more than 13% in afterhours trading.
In the three months ended Dec. 31, Netflix earnings of $4.27 a share on revenue of $10.25B, topping estimates of $4.27 on revenue of $10.13B.
The streaming giant raked in 18.9M users in Q4, well above the 9.2M estimated, underpinned by a strong content slate and growing demand for its ads tier membership.
“Our Q4 slate outperformed even our high expectations: Squid Game season 2 is on track to become one of our most watched original series seasons, Carry-On joined our all-time Top 10 films list, the Jake Paul vs. Mike Tyson fight became the most-streamed sporting event ever and on Christmas Day we delivered the two most-streamed NFL games in history,” the company said.
In Q4, the company’s ads tier accounted for over 55% of sign-ups in its ads countries and membership on its ads plan grew nearly 30% quarter over quarter.
“A top priority in 2025 is to improve our offering for advertisers so that we can substantially grow our advertising revenue,” the company said. “We’ll roll out our first party ad platform in the remaining ads countries in 2025, starting with the US in April.”
Looking ahead, the company projects 2025 revenue of $43.5B to $44.5B, $0.5B higher than its prior forecast range, compared with analysts estimates for $43.6B.
