Home > Content > Netflix Shares Slip After Missed Q4 Revenue, Subs Up

Netflix Shares Slip After Missed Q4 Revenue, Subs Up

Netflix has post a 27% year-on-year jump in revenue to US$4.19 billion, missing internal estimates for US$4.20 billion, and Wall Street forecasts for US$4.21 billion.

Despite beating subscriber and earning estimates, investors remained unimpressed with shares slipping ~3% in after trading following the report.

During Q4, the streaming giant added 8.84 million paid streaming subscribers – below internal estimates for 8.9 million, but beating consensus forecasts for 8.2 million.

For the year ending December 31, Netflix notched a total of 139 million global subscribers.

Driven by an onslaught of new titles, profit slipped to $US134 million [US$0.30/share], down $US186 million [US$0.41/share] last year.

Paid subscription growth stemmed from international customers, particularly in developing countries – exacerbated by increased foreign content (e.g. Spanish film ‘Roma’).

In Q4, Netflix added 7.3 million international users, a notable 42% increase. Domestic subscriber growth climbed 2%.

The news comes after Netflix announced a hike in subscription prices, with its most popular plan jumping from US$11/month to US$13/month. It follows a surge in streaming services, with Disney preparing to launch its own platform soon.

Concerning Q1 outlook, Netflix expects to add another 8.9 million subscribers.

You may also like
All The TV, Movies & Sport Heading To Foxtel In July
Ads On The Horizon As Streaming Battle Looms
More Pirate Video Sites Blocked: Bipartisan Backing Seen As Key
Stan’s Future Looks Uncertain As Nine Entertainment Look For Options
Netflix, Disney+, YouTube & Amazon Prime Face New Tax Hit