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Netflix released its final quarter earnings Monday claiming that it has had a “beautiful Q4” and a “great year”. The streaming giant indeed had a superb year as its user base has expanded to 117.5 million worldwide and the streaming revenue hit a record-breaking $11 billion.
Streaming revenue jumped 35% last year to more than $11.6 billion. Additionally, 24 million new subscribers have joined the Netflix club. In 2016, just 19 million new members subscribed to the service. Plus, 2017 was the first year that brought a positive profit internationally. The company more than doubled the global operating income.
Netflix also told investors that the total losses climbed to $39 million in Q4 since it had to ditch some unreleased productions. However, despite the losses, the forecasts for the annual operating income and profit have been exceeded thanks to stronger than anticipated member growth.
Net income was also affected by other unexpected expenses like a $26 million loss from shifts in the Eurobond. The company benefited greatly from $66 million in tax benefits from overseas, which offset some of the costs related to the repatriation of profits as mandated by the recently- revamped tax code.
Netflix Had a Fruitful Year
What’s more, the total value of subscriptions jumped 25% in Q4 from 2016 levels. If you add 9% from global streaming revenues to the figure, the overall revenue jumped 34%. The operating income also rose from $154 million in 2016 to $245 million in 2017.
The operating margin climbed from 6.2% in 2016 to 7.5% last year.
In the U.S., new memberships grew by 2 million to 5.3 million, which beat the initial expectations of 1.25 million new members for 2017. Overseas, the streamer hit the first year with a positive profit in its history.
For this year, Netflix estimates 1.45 million new users in the U.S. and 4.95 million globally.
Image Source: Flickr