Netflix shares jumped over 10% in after-hours trading Thursday following the release of the company’s fourth-quarter earnings report, which showed stronger-than-expected subscriber growth.
The streaming giant added 8.3 million global paid memberships in Q4, far exceeding forecasts of 4.5 million adds. This brings Netflix’s total paid memberships to over 230 million worldwide.
Netflix credited its hit content slate for the robust subscriber additions. Popular returning series like “Emily in Paris,” “The Witcher,” and “You” helped drive engagement in Q4. New releases such as “Wednesday” and “Harry & Meghan” also attracted significant buzz and sign-ups.
“2022 was a tough year, with a bumpy start but a brighter finish,” said Netflix in a letter to shareholders. “We believe we have a clear path to reaccelerate our revenue growth.”
The company expects to add 10 million global subscribers in Q1 2023. It plans to achieve this through a strong content lineup including new seasons of “You” and “Outer Banks,” as well as films like “Luther” and “They Cloned Tyrone.”
Netflix also announced an upcoming ad-supported plan to complement its existing ad-free tiers. The basic with ads plan will launch in early 2023.
Despite rising competition, Netflix remains the dominant global streaming platform with over 230 million paid memberships. The company’s focus on content, engagement and monetization continues to drive subscriber growth around the world.
