The streamer posted earnings that beat analysts’ estimates
Netflix reported Q4 2021 earnings per share of $1.33, crushing the consensus estimates of 82 cents. Revenue came in line with the $7.71 billion forecasted. In the fourth quarter, Netflix added 8.28 million globally paid net subscribers, fewer than the 8.5 million subscribers reported during 2020.
Concerning the latest figures, Netflix acknowledged that increased competition from other companies was one reason for the slowdown. “Consumers have always had many choices when it comes to their entertainment time - a competition that has only intensified over the last 24 months as entertainment companies all around the world develop their own streaming offering,” the company’s officials stated.
The quarterly figures came after the company had announced prices increases in the US and Canada. In the US, the cost for the basic plan stands at $9.99, while the standard and premium are $15.49, and $19.99, respectively. Moreover, it started tapping into the gaming world. Netflix has been releasing games based on popular titles to subscribers.
For Q1 2022, the company expects to add 2.5 million subscribers. It also plans for weighted back-end content, with big premieres set for March.
The market didn’t react positively to the news, Netflix stock trading 19.4% lower in pre-market to levels unseen since June 2020.
Sources: cnbc.com, finance.yahoo.com, thestreet.com