(Bloomberg) — Netflix Inc. shares hit a record high Wednesday after the streaming giant reported its biggest quarterly subscriber gain in its history, buoyed by its first major live sports events and the return of Squid Game.
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The company added 18.9 million customers in the fourth quarter, according to a letter to shareholders Tuesday. That was more than double what Wall Street expected and brought Netflix’s global subscriber count to more than 300 million. The company’s previous high was 15 million in the first quarter of 2020 – numbers driven by the start of the coronavirus pandemic.
The stock soared as much as 15% as markets opened in New York, its biggest intraday gain since October 2023.
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This is the last time Netflix will release its quarterly subscriber numbers. The company’s shares have historically risen and fallen based on customer additions, but management is trying to get investors to prioritize financial indicators such as sales and profits. The company said its revenue rose 16% to $10.2 billion for the quarter, the biggest rise since late 2021, and said its sales would grow faster than expected in 2025.
Netflix will boost sales by raising prices in its home market. The company is raising prices in the United States, Canada, Portugal and Argentina, with the most popular US plan increasing to $17.99 per month, an increase of $2.50. Netflix is also increasing the cost of its cheaper ad-supported plan.
For the year, the company expects revenue of up to $44.5 billion, a gain of 14% from the year just ended, with an operating margin of 29%.
Shares of the streaming leader rose about 15% in pre-market trading Wednesday after closing at $869.68 in New York. This would be the largest gain since October 2023 if it continues when the US stock markets open.
Netflix will stop reporting subscriber figures following an increase in new customers following a crackdown on password sharing. Analysts and investors expected the benefits of that effort to fade by now, but Netflix just recorded its best year ever in subscriber additions, gaining 41 million new customers.
The company credited a mix of programs including the hit film Carry-On and the second season of Squid Game, its most popular series of all time. The company said no single program accounted for the majority of its additions.