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Updated January 23, 2024 at 4:32 PM ET
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Netflix tallied 2023 as its strongest year ever by a host of metrics shared in its earnings report Tuesday afternoon, with the entertainment giant asserting dominance amid a difficult climate for streamers and the market It bought back the company’s growth story.
important facts
Netflix reported revenue of $8.8 billion and earnings per share of $2.11 for the three months ended Dec. 31, compared to analysts’ consensus estimates of $8.7 billion and earnings per share, according to FactSet. Profit was $2.22.
Total revenue of $33.7 billion and net income of $5.4 billion were each the company’s best-ever annual results, capping off a blockbuster financial year for Netflix.
Helping Netflix post record results was a huge increase in users amid the company’s password-sharing crackdown. The number of net users in 2023 reached nearly 30 million, the highest growth since 2020, but the number of net users added in the fourth quarter was 13.1 million, easily exceeding the 8.7 million expected by analysts.
Netflix stock soared more than 6% in after-hours trading on the positive surprise of growth in its subscriber base, trading at about $525, its highest since early 2022.
Still, Netflix’s stock price still bears major scars from the 2021-2022 disruption, and even though the stock has more than doubled in the past 18 months, it’s still down about 25% from its all-time high. .
amazing facts
The fourth quarter of 2023 was Netflix’s most explosive period of subscriber growth since the first quarter of 2020, due to stay-at-home orders stemming from the coronavirus disease (Covid-19) pandemic. Ta.
big number
80.1 million. The company says it has this many paid Netflix subscribers in the U.S. and Canada. This is equivalent to more than one-fifth of the total population of both countries.
important quotes
“It is becoming increasingly clear that Netflix has won the ‘streaming wars,'” Bank of America analysts led by Jessica Lief Ehrlich wrote in a note to clients last week.
Main background
Netflix’s record year in 2022 has been tough for the company, highlighted by its first quarterly subscriber decline in 10 years and its first annual decline in net profit in 2015. The streaming industry was decimated in 2022, as few services other than Netflix were able to capitalize on user growth. . Therefore, Netflix’s 30% drawdown from its 2021 peak is much smaller than the losses suffered by many of its peers. Shares of Disney, HBO parent company Warner Bros. Discovery, and Paramount Global are all down more than 50% from their 2021 highs.
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