Netflix stock jumped in after hours trading after announcing Q4 results that easily beat Wall Street expectations for sub counts, revenue and profits as it added 18.9 million new global users in the final quarter of 2024 and it boosted its total sub count to 301.63 million.
For the full year, revenue grew 16% to $39 billion, operating margin expanded six points to 27% and operating income exceeded $10 billion for the first time in its history. In Q4, revenue increased 16% year over year, helped by 18.9 million paid net adds, while operating income rose 52% year over year.
In the U.S. and Canada paid memberships increased by 4.8 million to 89.3 million.
The company also reported that in Q4, its ad-supported tier “accounted for over 55% of sign-ups in our ads countries and membership on our ads plan grew nearly 30% quarter over quarter.”
The newly announced price increases will boost the price of its premium tier by $2 to $24.99, and increase the cost of the ad-supported tier by $1 to $6.99 to $7.99 per month. The standard ad-free tier will jump by $2.50 to $17.99 per month.
