Netflix Q4 2023 Earnings Snapshot

Netflix Q4 2023 Earnings Snapshot

Netflix has reported substantial growth for its ad-supported tier, signaling a promising upward trend that led to noteworthy subscriber acquisition rates. In the fourth quarter of 2023, the company observed that 40 percent of new signups within ad-available countries were drawn to the ad tier, marking a 10 percent increase compared to the previous quarter's figures. This segment experienced a 70 percent growth in members compared to the third quarter, continuing the strong momentum reported in the prior period.

Co-CEO Greg Peters highlighted during the earnings call that the ad-supported tier boasts 23 million monthly active users spread across the 12 nations where it is currently available. He further projected continued growth, albeit indicating that the advertising side of the business will need several years before it significantly impacts the company's overall financials.


  • For the fourth quarter of the year, Netflix outperformed expectations by adding 13.1 million subscribers, which is a new record for Q4, reaching a total of 260.28 million subscribers globally by the year's end. The Wall Street estimates were surpassed, as they anticipated around 8.8 million net new subscribers for the quarter.

  • This subscriber increase prompted a rise of over 7% in Netflix shares during after-hours trading. From a financial standpoint, Q4 revenue grew by 12% year over year to $8.83 billion. This figure topped both the company's own forecast and the Wall Street projections thanks to favorable foreign exchange rates and higher-than-expected membership growth. However, Netflix's net income of $938 million, or $2.11 per share, slightly missed the anticipated $2.22 per share.

Further bolstering its portfolio, Netflix clinched a landmark 10-year, $500 million annual WWE " Monday Night Raw" deal starting in 2025. This agreement represents the company's largest investment in live sports content so far.

Addressing competition, Netflix downplayed the potential impact of further industry consolidation, having already factored in the large mergers over the past decade. They reaffirmed their adaptability amidst a competitive landscape with traditional entertainment companies and emerging tech giants.

Join the conversation

or to participate.