US streaming giant Netflix (NFLX) experienced a remarkable surge of 13.12 million subscribers in Q4 of 2023, surpassing predictions by both the company and Wall Street. After its revenue reports were announced, its stock price sat at 10% in pre–market trading on Wednesday.
Netflix’s surge in subscribers boosted 2023 Q4 revenue to $8.83bn
In 2022, the company forecasted a 9 million subscriber gain, which would bring approximately 30 million net additions for the full year. NFLX’s revenue reports surpassed Wall Street’s prediction of $8.71bn, instead showing a quarterly revenue of $8.83bn, a 12.5% increase compared to the same period in 2022.
The streaming giant sent waves through the film and TV world last year when it announced a crackdown on password sharing, increased ad-supported revenue and price hikes on specific subscription tiers. NFLX expects its Q1 revenue for this year to reach $9.24bn, aligning closely with its previous expectations announced in 2023 of $9.28bn.
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Earnings per share (EPS) fell short of estimates at $2.11, below the predicted Q4 figure of $2.20, while the EPS estimates for 2022 sat at a less-than-poor $0.12. That being said, the platform anticipates its Q1 of 2024 EPS to be $4.49, a $0.40 increase from its original $4.09 estimate.
Despite challenges from competitors, password sharing and a decrease in streaming usage due to a year of typical working hours (streaming usage during the pandemic increased by 37%, according to Screen Rant), NFLX remains strong in the market. Its new 10-year partnership with WWE is thought to contribute to its continued popularity, with the deal valued at over $5bn.
