• Netflix (NASDAQ: NFLX) saw a massive addition to its subscribers in Q4, exceeding Wall Street’s expectations with 7.66 million paid subscribers.
• The significant additional Netflix subscribers in Q4 increased the company’s shares by 6%.
• Co-founder Reed Hastings is stepping down as the CEO, while Netflix missed its earnings per share (EPS) coming in at 12 cents, nearly X4 less than the 45 cents prediction.
Netflix, a production company listed on the NASDAQ as NFLX, has seen a massive addition to its subscribers in the fourth quarter, far exceeding Wall Street’s expectations. With 7.66 million paid subscribers gained in Q4, the company’s stock price has increased by 6%. This significant additional Netflix subscribers in the fourth quarter has also led to the announcement of the co-founder of the company, Reed Hastings, stepping down from the role of CEO.
The company’s financial results for the fourth quarter saw the addition of the much anticipated „Basic with Ads“ tier in the US. This subscription service costs $6.99 per month and allows users to watch up to one hour of Netflix content with commercials every 15 minutes. This is the first time the new tier has been included in the company’s earnings, and it has already seen a lot of success.
Unfortunately, while the company saw a large surge in subscriber numbers, it did not meet its earnings per share (EPS) expectation. The EPS came in at 12 cents, which was almost four times less than the predicted 45 cents. Despite this, the company still saw a 7.12% increase in after-hours trading and a 9.05% increase in the last three months.
Netflix has been a leader in the streaming industry for quite some time, and its success in Q4 is a testament to that. While the company’s EPS was lower than expected, the boost in subscribers is a great sign for the future of the company. With the departure of Reed Hastings as CEO, it will be interesting to see how the company progresses over the coming months and years.