The company topped Wall Street revenue estimates during the last quarter of 2019 and matched its second-best performance in terms of total subscribers during a three-month stretch.
Netflix topped Wall Street revenue estimates during the last quarter of 2019 and added 8.8 million new subscribers. That number matched its second-best performance in terms of total subscribers during a three-month stretch.
After adding 8.8 million new clients, Netflix now has more than 167 million subscribers overall and, for the first time, it now has more than 100 million outside the United States. Approximately 550,000 of those Q4 subscribers came from the US, where Netflix is battling now against new competitors like Disney+. Moreover, the platform is also pushing towards a saturation point domestically, where it already has 61 million accounts.
In last year’s fourth quarter, Netflix increased sales 31% year-over-year and posted revenues of $5.47 billion dollars, edging past the $5.45 billion analysts anticipated. Its $1.30 earnings per share easily beat expectations of 52 cents EPS. Net income was $587 million for the period.
The subscriber growth matched Netflix’s performance from the fourth quarter of 2018. Later, the company set a record the following quarter when it added 9.6 million new customers during the first quarter of 2019.
Netflix’s stock has been on a healthy run in the last three months, climbing 18% to about $339 per share when the market closed on Tuesday. After the company released its earnings report, its share price dropped about 1.5% in early after-hours trading.
“Many media companies and tech giants are launching streaming services, reinforcing the major trend of the transition from linear to streaming entertainment. We have a big headstart in streaming and will work to build on that by focusing on the same thing we have focused on for the past 22 years — pleasing members,” Netflix said in the shareholder letter.