WASHINGTON (dpa-AFX) - Shares of Netflix Inc. (NFLX) jumped over 7% in extended session on Tuesday after the online-video streaming giant reported fourth-quarter results, with earnings missing Street view. However, the company added over 13 million subscribers, beating its expectations.
Netflix gained 13.12 million subscribers globally in the quarter, which was better than the company's estimate of about 9 million. The company ended the quarter with 260.28 million subscribers.
Looking forward to the first quarter, the company said it expects paid net additions to be down sequentially, reflecting 'typical seasonality as well as some likely pull forward from strong fourth quarter performance'. But expects it to be up compared to the first quarter of 2023's paid net adds of 1.8 million.
Los Gatos, California-based Netflix's fourth-quarter profit rose to $938 million or $2.11 per share from $55 million or $0.12 per share last year. On average, 34 analysts polled by Thomson Reuters expected earnings of $2.22 per share for the quarter.
Netflix's revenues for the quarter rose 12.5% to $8.833 billion from $7.852 billion last year. Analysts had a consensus revenue estimate of $8.72 billion for the quarter.
Revenue growth reflects the company's recent price changes, as average revenue per membership was up 1% year over year.
Looking forward to the first quarter, Netflix expects revenues of $9.240 billion and earnings of $4.49 per share. Analysts currently expect earnings of $4.10 per share and revenues of $9.30 billion.
NFLX closed Tuesday's trading at $492.19, up $6.48 or 1.33%, on the Nasdaq. In the after-hours trading, the stock gained $35.03 or 7.12%.
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