Netflix modestly exceeded expectations in its latest Q4 earnings report with higher earnings per share and revenue, sending stocks up in after-hours trading.
Investors were eager to see how the company fared following the launch of Disney+ and AppleTV+ in November and in light of the upcoming launch of NBCUniversal’s Peacock streaming service.
Earnings per share were $1.30 compared to an estimate of $0.51, and overall revenue was $5.47 billion compared to an estimate of $5.45 billion.
Year over year growth remained steady at 30.6 percent, slightly down from the last quarter’s rate of 31.1 percent, but above prior quarters in 2019.
The number of net paid subscribers, perhaps the most anticipated metric from the streaming company, was also up at 8.76 million. While this was not quite the 9.7 million anticipated by bullish Goldman Sachs analysts, it did beat the 7.6 million forecast by Netflix and other analysts.
The total number of memberships was 167 million, up from 158 million in the last quarter, with a year over year growth of 20 percent.
The number of U.S. subscribers, however, came in at 550,000, compared to an estimate of 589,000.
In a letter to shareholders, Netflix highlighted its slate of original programming, including The Witcher, which debuted in December and is tracking to become its “biggest season one TV series ever” with 76 million member households choosing to tune into the action-fantasy adventure.
As U.S. competition grows, Netflix appears primed to produce more content tailored to different markets around the world.
“We know that local audiences love local stories. In fact, local originals were the most popular 2019 titles in many countries, including India, Korea, Japan, Turkey, Thailand, Sweden, and the UK,” the company said in its shareholder letter.
Stocks rose Thursday, but only after another dizzying day for Wall Street where a big show of strength from the morning vanished and worries rose about the banking industry.
The labor market continues to defy the Federal Reserve’s attempts at loosening it, with U.S. applications for unemployment benefits down again last week and remaining at historically low levels.
General Motors (GM) announced that it will stop production on the current sixth generation of the iconic Chevrolet Camaro. Production at the Lansing Grand River Assembly Plant in Michigan is expected to end in January 2024.
Web browser Mozilla is investing $30 million into launching a startup, called Mozilla.ai, focused on building a "trustworthy, independent, and open-source AI ecosystem."
The Federal Aviation Administration (FAA) is launching a new plan to avoid flight delays in New York City and Washington, D.C. this summer. The plan will lower requirements for airlines to obtain take off and landing rights to help avoid congestion.
Lawmakers grilled TikTok CEO Shou Zi Chew on Thursday in a high-stakes hearing on the future of the popular, Chinese-owned video sharing platform in the U.S.
Actress Lindsay Lohan appears at the Christian Siriano Fall/Winter 2023 fashion show in New York, Feb. 9, 2023. The Securities and Exchange Commission said Wednesday, March 22, that Lohan, rapper Akon and several other celebrities have agreed to pay tens of thousands of dollars to settle claims that they promoted crypto investments to their millions of social media followers without disclosing they were being paid to do so.
Cheddar News breaks down what to look for on The Day Ahead, as TikTok CEO is scheduled to testify before Congress on Thursday while earnings from General Mills and Darden Restaurants are on tap. Residential sales data for February is also scheduled to be released.
