Consumer Discretionary

Netflix’s (NFLX) fourth-quarter results exceeded estimates as the streaming giant reported a record addition of new subscribers. Revenue increased 16% year-over-year to $10.25 billion, topping the consensus on FactSet for $10.11 billion. Per-share earnings climbed to $4.27 from $2.11 a year earlier, higher than the Street’s $4.21 GAAP view. Netflix’s global paid net additions totaled 18.91 million in the fourth quarter, well above consensus of 10.18 million. The company a year earlier reported net additions of 13.12 million. Netflix’s shares were up 13% in after-hours trade. “Membership growth was driven by broad strength across our content slate, improved product/market fit across all regions and typical (fourth-quarter) seasonality,” the streaming service said in a letter to shareholders. The company said that growing advertising revenue will be a “top priority” in 2025. Having launched a first party ad tech platform in Canada late last year, Netflix plans to roll out a similar […]

Netflix Co-Chief Executive Ted Sarandos says on a call with analysts that the wildfires in Southern California won’t cause any meaningful disruptions to the streaming giant’s Los Angeles-based productions or cash-content spending in 2025. He says the company’s goal is to keep productions on schedule, while aiding relief efforts and being mindful of those who need time to work through the challenges of the fires. “This industry has been through a really tough couple of years, starting with Covid, going into the strikes and now this,” he says. “So it’s really important that we try not to delay anything and try to make sure that these jobs stay safe.” Shares jump 14% on surging demand and sharp subscriber gains in 4Q.

The following is a summary of the Netflix, Inc. (NFLX) Q4 2024 Earnings Call Transcript: Financial Performance: Netflix reported a strong end to 2024 with significant revenue contributions from both domestic and international markets, emphasizing a robust quarter without major financial setbacks due to operational disruptions. The price increases implemented have aligned smoothly with their market growth. Subscription growth excelled with 19 million additional subscribers in Q4, credited to a broad and diverse content library, not specifically dependent on live events or blockbuster titles. Operating margins improved as a result of strategic cost management, aligning selling, general, and administrative expenses with revenue growth and maintaining disciplined content spending, expected to rise from $17 billion in 2024 to around $18 billion in 2025. Business Progress: Netflix’s advertising plan has substantially increased its subscriber base, achieving rapid growth with 55% of sign-ups in Q4 coming from their new advertising model. Engagement with