"The streaming giant came in slightly ahead of estimates for the fourth quarter, reporting record revenue of $12 billion and earnings per share of $0.56. Wall Street had expected Netflix to report revenue of just under $12 billion and earnings per share of $0.55. Last quarter, Netflix's earnings came in well below estimates after a costly dispute with Brazilian tax authorities."
"Heading into the fourth-quarter earnings, Netflix shares had fallen about 30% in the last three months. Shareholders have seemed concerned by its decision to buy Warner Bros. Discovery's studio and HBO assets. Netflix's leadership team has sounded confident that regulators will approve its deal, but rival suitor Paramount Skydance hasn't given up in its quest to buy all of WBD. On Tuesday, Netflix sweetened its bid by making its offer all-cash."
"The company said it has more than 325 million subscribers, up from 300 million at the end of 2024. Besides that growth, several signs suggest Netflix's business is healthy. Netflix's cancellation rate is easily the lowest among paid streaming services in the US, at less than 2%, according to subscription data provider Antenna. No other streamer has a churn rate below 4%."
Netflix posted slightly better-than-expected fourth-quarter results with record revenue of $12 billion and earnings per share of $0.56. First-quarter guidance of $0.76 per share missed analyst expectations, prompting a more than 4% drop in after-hours trading and contributing to a roughly 30% share decline over three months. The company projects $12.15 billion in Q1 revenue and a 32.1% operating margin while pursuing Warner Bros. Discovery studio and HBO assets amid a competing Paramount Skydance bid. Subscriber count rose to over 325 million, churn remains under 2%, and December viewership reached record levels.
Read at Business Insider
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