Netflix's official quarterly earnings report or press release

Netflix Surpasses 300M Subscribers with Record Q4 Growth, Announces Price Hikes and $15B Buyback

Jan 21, 2025, 09:52 PM

Netflix Inc. reported its fourth-quarter earnings for 2024, surpassing analyst expectations with strong financial results and record-breaking subscriber growth. The streaming giant posted earnings per share of $4.27, up 102% year-over-year, exceeding the estimated $4.20, and revenue of $10.25 billion, a 16% increase from the prior year, above the anticipated $10.11 billion. Net income nearly doubled to $1.87 billion, up 99% year-over-year. The operating margin expanded to 22%, compared to 17% in the previous year. Free cash flow for the quarter was $1.38 billion. Netflix added 18.91 million net paid streaming subscribers during the quarter, more than double the forecasted 9.6 million, representing a 16% year-over-year increase and bringing its total global subscriber base to over 300 million. For the full year 2024, the company achieved record annual net additions of 41 million subscribers. The substantial subscriber increase was driven by a robust content slate that outperformed expectations, including popular titles such as "Squid Game" Season 2, live NFL Christmas games, and the highly viewed Jake Paul vs. Mike Tyson boxing match, which became the most-streamed sporting event on the platform. This successful quarter marked the first time operating income exceeded $10 billion annually in Netflix's history. In addition to the strong financial performance, Netflix announced a new $15 billion share buyback program, bringing the total buyback authorization to $17.1 billion. The company also revealed price hikes for its subscription plans in the United States and Canada, including the first-ever increase for the ad-supported tier. The standard plan without ads will increase from $15.49 to $17.99 per month, while the ad-supported tier will rise from $6.99 to $7.99 per month. The premium plan will see an increase from $22.99 to $24.99 per month.