Netflix Beats Q4 Growth Forecasts

Netflix reported 7.66 million net new additions in Q4 2022 to reach a total of 230.75 million members, with revenues up 1.9 percent to $7.85 billion.

The streaming giant recorded a Q4 profit of $55 million.

“2022 was a tough year, with a bumpy start but a brighter finish,” the company said in its letter to shareholders. “We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering.”

The platform is expecting revenue growth of 4 percent in Q1 2023, when it will expand its paid sharing plan first introduced in Latin America.

Addressing the increasingly competitive streaming environment, Netflix noted: “It’s not easy to build a large and profitable streaming business. But we’re competing from a position of strength, as we lead the industry in terms of engagement, revenue and streaming profit. As a pure-play streaming company, we’re also not anchored to shrinking legacy business models, like traditional entertainment firms, allowing us to lean hard into the big growth opportunity ahead of us.

“We believe ultimately the vast majority of time spent on TV will happen via streaming, which should provide a long runway for growth as we continue to improve our service.”

U.S. and Canada revenues were up 10 percent year-on-year to $3.6 billion, with subs rising to 74.3 million. In EMEA, revenues were down 10 percent to $2.35 billion, with an additional 3.2 million subs to reach 76.73 million. LatAm revenues rose just 2 percent to $1 billion from 41.7 million paid members, a gain of 1.76 million. AsiaPac revenues took a hit, largely due to foreign-exchange issues, falling 17 percent to $857 million. Subs in the region rose by 1.8 million to reach 38 million.