Netflix subscriptions increased 26 percent to nearly 139.3 million in the fourth quarter, as the Los Gatos, Calif., streaming giant continued to attract more customers and bolster its library of original programming.
The company cited its strong growth in original content, with more than 80 million households seeing the science fiction thriller "Bird Box" in its first four weeks on Netflix.
The numbers:
Netflix earned $133.9 million, or 30 cents a share, on revenue of nearly $4.2 billion during the fourth quarter. That compared with $185.5 million, or 41 cents a share, on revenue of nearly $3.3 billion during the same quarter in 2017.
For all of 2018, Netflix earned $1.2 billion, or $2.68 a share, on revenue of nearly $15.8 billion. That compared with net income of $558.9 million, or $1.25 a share, on revenue of nearly $11.7 billion in 2017.
The earnings beat Wall Street expectations, while revenue remained in line with their estimates. Analysts polled by FactSet had estimated earnings of 24 cents a share and $4.2 billion in revenue for the fourth quarter and $2.65 a share and $15.8 billion in revenue for the full year.
The takeaway:
Despite the strong results, the company still faces head winds. Netflix will probably lose licensed content from 21st Century Fox and Walt Disney Co. when Disney later this year launches its own streaming service, which will put more pressure on Netflix to harness its original programs to keep subscribers happy.
"Our growth is based on how good our experience is, compared to all the other screen time experiences from which consumers choose," Netflix said in a statement. "Our focus is not on Disney+, Amazon or others, but on how we can improve our experience for our members."
Netflix also recently announced another price increase. The company said its most popular plan was increasing to $12.99 a month, up from $10.99, which could cause some subscribers to ditch the service for cheaper alternatives.
Analysts surveyed by FactSet had estimated the number of subscribers would grow by 9.2 million in the fourth quarter. Netflix added 8.8 million during that time.
