Netflix Q4 Earnings: Record Subscribers, NFL, 'Squid Game' Push Past 'Highest Expectations' (UPDATED)

Editor’s Note: This article was updated to include details on Netflix's share repurchase activity

Streaming leader Netflix Inc NFLX reported fourth-quarter financial results after market close Tuesday.

Here are the key highlights.

What Happened: Netflix reported fourth-quarter revenue of $10.25 billion, up 16% year-over-year. The revenue total beat a Street consensus estimate of $10.11 billion according to data from Benzinga Pro.

The company reported earnings per share of $4.27 for the quarter, beating a Street consensus estimate of $4.19.

Netflix reported it added 18.91 million paid subscribers in the fiscal quarter, up 15.9% year-over-year. The company ended the quarter with 301.63 million paid subscribers.

Average revenue per member was a up 1% year-over-year in the quarter.

"Our Q4 slate outperformed even our highest expectations," the company said.

Highlights cited by the company included a second season of "Squid Game," "Carry-On," the Jake Paul vs. Mike Tyson boxing match and the NFL Christmas Day games.

Operating income topped $10 billion for the first time in company history for the full fiscal year.

Netflix said it bought back 9.9 million shares valued at $6.2 billion in 2024. The company has bought back $12.9 billion in shares since the buyback plan was introduced. The company announced its board approved an “incremental $15B for the program,” which makes the total buyback authorization a new total of $17.1 billion.

The company said it enters 2025 with strong momentum, coming off a year with record net additions (41M) and having re-accelerated growth (16% increase in revenue).

What's Next: Netflix is guiding for first-quarter revenue to be $10.42 billion, which would be up 11.2% year-over-year. The company is guiding for operating income of $2.94 billion in the first quarter and earnings per share of $5.58.

Full-year guidance for revenue in 2025 is now listed as a range of $43.5 billion to $44.5 billion, up $0.5 billion from the company's previous range. This guidance represents year-over-year revenue growth of 12% to 14%.

Netflix will no longer break out membership growth going forward in fiscal 2025. The company said its guidance reflects "continued healthy member growth."

The company said its priorities for 2025 include improving the core business with more series and films, developing new initiatives like live programming and games and sustaining healthy growth.

"We maintain a leadership position in engagement, revenue and profit. We're focused on improving all aspects of our service and, combined with the return in 2025 of our biggest shows (Squid Game, Wednesday and Stranger Things), we're optimistic heading into the new year," the company said.

Hitting on future growth, Netflix said there are an estimated 750 million+ broadband households excluding China and Russia. The company said it has captured around 6% of the $650 billion revenue opportunity in its four key geographical markets.

"Similarly, we believe we account for less than 10% of TV viewing in every country in which we operate, all of which suggests a long runway for growth as streaming continues to expand around the world."

NFLX Price Action: Netflix stock is up 11% to $962.49 in after-hours trading Tuesday versus a previous 52-week trading range of $479.90 to $941.75. The company's earnings report has helped set a new 52-week high Tuesday.

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