Netflix shares pop on new subscriptions, CEO swap

In a nutshell: Netflix received off to a bumpy begin in 2022 however completed the yr on a excessive be aware. For the fourth quarter ending December 31, Netflix generated $7.85 billion in income. That is a modest acquire of simply 1.9 p.c yr over yr however it’s higher than going within the flawed course. Diluted earnings per share checked in at $0.12.

Full yr 2022 income was $31.62 billion with $4.5 billion in web revenue and diluted earnings per share of $11.24.

Netflix managed so as to add 7.66 million paid subscribers in the course of the vacation season, pushing the overall variety of paid memberships to 230.75 million. The launch of Netflix’s lower-priced ad-supported tier in November little doubt performed a task right here, with the corporate saying it was happy with the providing’s early outcomes. Sadly for the curious amongst us, Netflix didn’t disclose what portion of its subscribers are signed up for the ad-supported tier so it’s robust to gauge (as an outsider) simply how profitable it’s.

Content material is king and Netflix had loads of good exhibits and films to look at in 2022. Season 4 of Stranger Issues hit one billion hours seen, as did the brand new collection Wednesday starring Jenna Ortega. Different hits included Monster: The Jeffrey Dahmer Story, Glass Onion: A Knives Out Thriller, Purple Hearts, Harry & Meghan, and The Adam Mission.

The streaming video big additionally revealed that co-founder and co-CEO Reed Hastings has transitioned to government chairman. Becoming a member of Ted Sarandos will proceed as co-CEO alongside Greg Peters, who’s stepping up from his earlier position as chief working officer.

Shares in Netflix hit a excessive mark close to the top of 2021 at almost $700 however issues turned south in a rush in 2022 and by June, those self same shares have been buying and selling round $175. The restoration since final summer time has been fairly regular with shares presently buying and selling at $337.21 as of this writing. That features a rise of almost seven p.c based mostly on in the present day’s information.

Picture credit score: John-Mark Smith, Simone Daino