Netflix's Impressive Earnings

Netflix (NFLX) wowed investors with its fourth-quarter results, exceeding analysts’ expectations and raising its revenue forecast for 2025. This positive news sent shares soaring after hours on Tuesday.

Revenue and Earnings Figures

The streaming giant reported a remarkable 16% increase in revenue, reaching $10.25 billion—surpassing the consensus estimate from analysts at Visible Alpha. The company also posted earnings of $1.87 billion, or $4.27 per share, a significant jump from $937.8 million, or $2.11 per share, reported in the same quarter last year.

Membership Growth

End-of-year figures reveal that Netflix closed 2024 with a staggering 302 million memberships and added 19 million net new subscribers during the fourth quarter alone. Notably, this will be the last quarter Netflix reports its membership and average revenue per member on a quarterly basis, as announced in earlier communications.

Revised Forecast for 2025

Looking forward, Netflix has revised its forecast for fiscal 2025, now anticipating revenues between $43.5 billion and $44.5 billion—$500 million above its previous outlook. Analysts were estimating around $43.65 billion according to data from Visible Alpha.

Share Buyback Program

Additionally, the streaming giant has announced a substantial increase in its share repurchase program, boosting it by $15 billion to a total authorization of $17.1 billion. Last year, Netflix successfully repurchased 9.9 million shares for $6.2 billion, a strategic move likely aimed at enhancing shareholder value.

Conclusion

With these impressive results and bold financial maneuvers, Netflix is positioning itself strongly in the competitive streaming market. Investors and analysts alike will be watching closely to see how these initiatives play out in the coming quarters.