Netflix beat forecasts for subscriber growth and total revenue in the fourth quarter, adding 8.5 million subscribers to reach a global total of 203.7 million.
It had projected adding 6 million total subscribers in the fourth quarter. Revenue hit $6.6 billion, just a shade ahead of expectations. Earnings per share fell short of expectations at $1.19 a share.
The streaming leader also said it expects to be cash-flow positive in every year beyond 2021 and expects this year to be break-even. If that comes to pass, it will mean less dependence on the debt market, which has raised concerns from some on Wall Street despite the company’s weed-like growth.
In the third quarter, it had signed up just 2.2 million subscribers, a sharp drop from the boom in the first half of 2020 due to the most severe lockdowns of the coronavirus pandemic.
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Netflix stock has sagged almost 7% in 2021 to date, but it rose 4% today to finish at $501.77 and rocketed after hours. It surged more than 60% in 2020 amid a broad advance by tech stocks during the onset of Covid-19.
In terms of financials, Netflix had projected fourth-quarter revenue of $6.6 billion and earnings per share of $1.35. Wall Street’s consensus expectation from analysts was very similar, except for a $1.39 outlook on earnings.
A price increase for Netflix subscriptions in the U.S. was announced in the fourth quarter and has just taken effect, boosting the monthly rate of the most popular plan to $14 a month from $13. It was the first hike in two years and comes as Netflix faces mounting competition domestically.
Netflix remains well ahead of fast-rising Disney+, which reached 86.8 million global subscribers in December, but it faces more competition than ever. Parents of new streaming rivals like Disney+, HBO Max, Apple TV+, Peacock and Discovery+ will soon also report their quarterly financials and shed some light on their progress.
Programming highlights for Netflix in the quarter include the fourth season of The Crown, the debut of The Queen’s Gambit and original movies like The Christmas Chronicles 2 and Oscar hopefuls like Mank.
This article is auto-generated by Algorithm Source: deadline.com
