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
Vinyl Records Outsell CDs For Second Time
Roku Disabling TVs & Streamers If New Terms Aren’t Agreed To
Best Buy Stops Selling Physical Media; Sony Takes Over Disney’s DVDs, Blu-rays
Apple Goes After Spotify After Streaming Co Got Apple Fined $3 Billion By The EU
Plex To Start Renting Movies