1/23/2024: Netflix Earnings Beat Expectations

13.1 million subscribers added

Netflix reports Q4 earnings after market close today. Revenue was $8.83B vs. $8.72B expected. EPS was $2.11 vs. $2.22 expected. Total subscribers were 260.8M vs. 256M expected. 13.1 million subscribers were added in Q4. FCF went from $332M a year ago to $1.581B this past quarter. Revenue growth was 12% in 2023 vs. 6% in 2022. The company’s effort to crack down on account sharing and to increase subscription fees fueled its growth and profits. NFLX 0.00%↑ stock soared 8% after the report.

Netflix is a beneficiary of inflation. They totally used inflation as an excuse to increase subscription prices and to crack down on account sharing. It appears the plan is working and customers are receptive to the changes. This morning it is reported that Netflix is spending $5B over 10 years to acquire the exclusive rights to Raw as well as other programming from World Wrestling Entertainment. I wonder if Netflix will offer pay-per-view programming. Anyway it’s an interesting bet on live events. I appreciate this new initiative. It’s a more pleasant way to grow than to simply squeeze more money out of customers by manipulating subscription plans.