Netflix beat estimates and gained 7.7 million users in the fourth quarter of 2022, reaching 230.5 million worldwide.
Wall Street had forecast 4.6 million new subscribers, while the real figure is very close to the 8.3 million Netflix gained a year ago. Revenues were $7.82 billion, +2% compared to the same period of 2021 and slightly below Wall Street’s estimates (7.85 billion). Earnings per share were 12 cents, well below estimates (45 cents) and year-ago value ($1.33).
The last quarter of 2022 was very intense for the platform, which welcomed several successful titles, such as Harry & Meghan , Wednesday and Glass Onion – Knives Out , also released in cinemas for a week in different territories. In the United States, the film grossed $13 million in 600 theaters across the AMC, Regal and Cinemark circuits. And then there was the introduction of the new ad-supported subscription, which wasn’t as successful as hoped. In any case, Netflix had estimated to gain 4.5 million new subscribers and got far more.
Now the eyes are focused on the password sharing revolution , with which Netflix would like to buffer the widespread habit of sharing accounts with people outside of one’s home. The measure has been tested in Latin America and, as the company explains in its letter to shareholders, “we expect that in each market some will react by canceling”. But as the account lenders’ homes start adding the extra homes, “we expect to see overall revenue growth.”
The other big piece of news from the shareholder call was Reed Hastings leaving the co-CEO role, which was inherited by Greg Peters . Hastings will become Executive Chairman. Additionally, Bela Bajaria , former Head of Global TV, and Scott Stuber , former Head of Global Films, were promoted to Chief Content Officer and Vice Chairman of Film and Television, respectively.