From Financial Modeling Prep: 2025-01-22 09:54:00

Netflix (NASDAQ:NFLX) saw a 15% surge in pre-market trading following a stellar Q4 performance, with earnings of $4.27 per share on $10.25 billion revenue, exceeding estimates. The addition of 18.9 million new subscribers, double projections, was driven by popular content like Squid Game Season 2 and the ad-supported tier.

The ad-supported tier was a key growth driver for Netflix, accounting for over 55% of new sign-ups in Q4. Plans to enhance the ad platform in the U.S. in April 2025 were announced. In response to subscriber growth, prices for the ad-supported plan in the U.S. were raised to $7.99 and the premium tier increased by 9%.

Netflix raised its 2025 revenue projection to $43.5 billion to $44.5 billion, a $500 million increase from previous guidance. This outlook slightly surpassed analyst expectations of $43.6 billion. The company emphasized its commitment to expanding advertising revenue and enhancing its content lineup to sustain growth.



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