The Los Gatos-based streaming company Netflix reported earnings for Q4 2020.
In the past quarter, the company had an EPS of $1.19, lower than the $1.39 per share expected. On the other hand, revenues came in higher than the $6.62 billion forecasted, at $6.64 billion.
The pandemic seems to have been beneficial for the streaming platform, as globally, it added 8.5 million net subscribers. The market was expecting 6.47 million new subscribers for the last three months of 2020.
Given the promising numbers, Netflix announced that it would soon become free cash flow positive, which will allow it to start a stock repurchasing program, and pay its $15 billion debt. Currently, Netflix has $8.2 billion cash on hand.
Following the news, Netflix stocks gained roughly 12%.