Netflix (Nasdaq: NFLX) shares are rising in premarket trade after the firm revealed a massive finish to fiscal year 2024.
The stock is currently at an all-time high as of this writing, following the announcement that the firm has achieved a huge milestone by crossing the 300 million subscriber threshold for the first time.
Here’s all you need to know about Netflix’s Q4 earnings and their influence on the company’s stock price.
Netflix’s Q4 2024 subscriptions increase
Netflix’s fourth-quarter 2024 results were nothing short of spectacular. Here are its key metrics for the period:
- Revenue: $10.25 billion * Diluted EPS: $4.27
- Global streaming paid memberships: 301.63 million.
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Netflix reported a 16% rise in Q4 income over the previous year, thanks to the acquisition of 19 million new customers. All of this enabled Netflix to reach over 302 million paying memberships—the first time it has topped 300 million users globally.
To put some of these data into context, Netflix outperformed most analyst predictions for the quarter. According to CNBC, experts expected $10.11 billion in sales, $4.20 in earnings per share, and 290.9 million paying subscribers.
Netflix attributes its record-breaking quarter to a number of variables, including its programming slate and regular Q4 seasonality. The business singled out some of its top performances, including the second season of Squid Game, which it claims is on course to become one of its most popular original series, and the holiday airport thriller Carry-On.
Netflix also said that the popularity of its live-shown sports events, such as the Jake Paul vs. Mike Tyson fight and the two NFL games streamed on Christmas Day, exceeded expectations.
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Netflix also announced price increases, which pleased investors but may alienate some of the members it gained in the most recent quarter.
Price increases for all Netflix subscription packages.
In addition to excellent profits and sales, Netflix said that it would increase subscription prices in four countries: the United States, Canada, Portugal, and Argentina.
In the United States, the prices of Netflix’s various subscriptions will increase as follows:
- Standard ad plan: $6.99 to $7.99.
- Standard (1080p) plan: $15.49–$17.99 * Premium (4K) plan: $22.99–24.99.
According to CNBC, Netflix is also increasing the cost of adding an additional person to a plan. Extra members allow consumers to add someone from outside their family to their Netflix account. The cost of adding an additional member will increase by $1 per month, from $7.99 to $8.99.
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Netflix did not specify when the price increases would take effect, but it did state that “as we continue to invest in programming and deliver more value for our members, we will occasionally ask our members to pay a little more so that we can re-invest to further improve Netflix.”
Netflix last raised rates for some of its plans in the United States in 2023.
NFLX stock price reaches an all-time high.
While the anticipated price increases may dissatisfy Netflix customers, investors do not appear to believe they will harm the company’s profitability. Netflix shares are up more than 15% in premarket trading after the firm reported Q4 numbers after the closing bell last night.
Netflix premarket shares surpassed $1,000 early Wednesday morning, marking the company’s all-time high.
Netflix’s future plans for 2025 include expanding its ad revenue, focusing on content that people enjoy, and expanding its live programming slate. The company expects $10.4 billion in revenue in Q1 2025, representing an 11.2% increase over the previous year.
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