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Netflix Surpasses 300 Million Subscribers Reports Strong Q4 Earnings and Raises 2025 Revenue Outlook

Prime Highlights: 

Netflix surpassed 300 million paid memberships, adding a record 19 million subscribers in Q4 2024. 

Netflix reported Q4 revenue of $10.25 billion, up 16% year-over-year, and earnings per share of $4.27, beating expectations. 

Netflix increased its full-year 2025 revenue outlook to a range of $43.5 billion to $44.5 billion, reflecting strong Q4 performance. 

Key Background: 

Netflix shares surged more than 14% on January 21, 2025, following the company’s impressive fourth-quarter earnings report, which exceeded both revenue and earnings expectations. The streaming giant surpassed a significant milestone, reaching 301.6 million paid memberships, adding a record 19 million subscribers during the quarter. The growth was attributed to the strength of Netflix’s content slate, enhanced product features, and seasonal demand in the fourth quarter. 

Netflix’s total global audience, including “extra member accounts,” is now estimated to exceed 700 million. The company has emphasized its strategy of offering diverse, high-quality programming across regions and genres, contributing to its broad appeal. Co-CEO Ted Sarandos highlighted the company’s focus on delivering engaging content year-round. 

For Q4, Netflix reported earnings of $4.27 per share, surpassing analysts’ forecasts of $4.20, while revenue increased by 16% year-over-year to $10.25 billion, exceeding Wall Street’s estimate of $10.11 billion. Net income for the quarter nearly doubled, reaching $1.87 billion, up from $938 million in the previous year. 

Looking ahead, Netflix raised its revenue forecast for 2025 to a range of $43.5 billion to $44.5 billion, reflecting the company’s strengthened business fundamentals and better-than-expected performance in Q4. The company also announced that Q4 was the last period for reporting quarterly paid subscriber counts, transitioning to bi-annual “engagement reports.” Netflix’s fourth-quarter slate included notable releases like season 2 of Squid Game, live sporting events, and special programming, all of which contributed to strong retention rates. 

In 2025, Netflix plans to further invest in original content, enhance its product experience, and expand its advertising business. The company also announced a price increase for some subscription tiers and noted the success of its ad-supported options, which now represent over 55% of sign-ups in markets where available. The company is positioning itself for continued growth in both content and advertising.