April 13, 2024
Netflix ( NFLX ) reported better-than-expected revenue in the fourth quarter on the back of renewed subscriber growth momentum, but a one-time charge saw earnings narrowly miss estimates.
The company’s net income for the quarter came in at $938 million or $2.11 per diluted share. Those figures were slightly lower than the $983.9 million or $2.25 per diluted share expected by analysts polled by Visible Alpha. A $239 million charge related to foreign exchange measurement of denominated debt made EPS miss the company’s own $2.15 per share projection.
Revenue grew 12% compared to the year-ago quarter to $8.83 billion.
| Q4 2023 | Analyst Estimates for Q4 2023 | Q4 2022 | |
| Revenue | $8.83 billion | $8.7 billion | $7.9 billion |
| Earnings Per Share | $2.11 | $2.25 | $0.12 |
| Net Income | $938 million | $983.9 million | $55.3 million |
After relatively flat subscriber growth at the end of 2021 and through most of 2022, Netflix has gained momentum in recent quarters due to its tiered pricing structure and a crackdown on password sharing. The lowest pricing tier at $6.99 is ad-supported, another way for the company to monetize.
In the fourth quarter, Netflix had 260.28 million paying customers globally, up 12.8% compared to the year-ago quarter.
Netflix shares were up 8.4% at $533.66 in after-hours trading at around 5:00 p.m. ET.
