Netflix stocks surged by 10% during premarket trading on Wednesday after the streaming giant released its fourth-quarter results. 13.12 million subscribers joined Netflix in the quarter, beating the company’s own forecast of roughly nine million additions. Full-year 2023 additions stood at 30 million.
Revenue for the final quarter of 2023 was reported at $8.83 billion, beating Wall Street estimates of $8.71 billion. This was largely spurred by price hikes along with initiatives such as ad-supported tiers and a crackdown on password sharing. The ad tier has surpassed 23 million active users, Netflix confirmed.
Earnings per share narrowly missed estimates, coming in at $2.11 compared to a predicted $2.20. This is still a significant rise from the $0.12 EPS recorded during the same quarter the previous year. Free cash flow for Q4 of 2023 was $1.58 billion, while full-year free cash flow was $6.9 billion.