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Netflix blows away expectations on subscriber numbers



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Illustration of stock trading graph of Netflix seen on a smartphone screen.Rafael Henrique | SOPA Images | Lightrocket | Getty ImagesNetflix added millions more subscribers in the fourth quarter than Wall Street expected, helping to send shares of the streamer up after the bell despite a big earnings miss.The company also disclosed that co-CEO Reed Hastings would be stepping down from his position and transitioning to the post of executive chairman. Greg Peters, the company’s chief operating officer has been promoted to co-CEO alongside the already established Ted Sarandos.Here are the results:EPS: 12 cents vs 45 cents per share, according to Refinitiv.Revenue: $7.85 billion $7.85 billion, according to Refinitiv survey.Global paid net subscribers: 7.66 million adds, compared to 4.57 million subscribers expected, according to StreetAccount estimates.Netflix’s EPS missed largely due to a loss related to euro-denominated debt, but its margins of 7% still topped Wall Street’s expectations. The depreciation of the U.S. dollar compared to the euro during the fourth quarter isn’t an operational loss. This is the first quarter that Netflix’s new ad-supported service is included in its earnings results. The company launched this cheaper tier in November, but has not disclosed what portion of the new subscriptions are from users who have opted for this service.During the company’s prerecorded earnings call, Netflix said that it has seen comparable en …

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